Advanced Micro Device's Beat Is Still a Loss
And a big one, considering Intel is solidly in the black.
Asian stocks were mixed overnight. The Hang Seng was up 1.23%, but the Nikkei was down 0.21%. European stocks were in positive territory early this morning. And here in the US, we're currently trading higher.
Here's what I'm focused on this crisp Monday morning:
Advanced Micro Devices (AMD):
The chipmaker was under the spotlight this past Friday after it released its third-quarter numbers. In the period, the California-based company (and one-time Wall Street darling) lost $0.18, whereas the Street was expecting a loss of $0.42. It beat on the top line, too.
But this doesn't mean I've changed my tune.
1. A beat is a beat, but at the end of the day, losing $0.18 is nothing to get in a frenzy about -- especially when Intel (INTC) -- its number-one competitor -- is solidly in the black this year and it's basically eating its lunch.
2. I realize the market was down on Friday but the bottom line is that the stock struggled on pretty hefty volume. This tells me that perhaps even some of the diehards are finally seeing the writing on the wall and are cashing in their chips.
3. Again, as I've pointed out in the past, insiders haven't been sliding their chips into the pot in huge quantities (in the open market), so why should I should I?
For my last take on AMD, click here.
The Texas-based oilfield-services company was out with its third-quarter numbers. The company put up $0.31 in the period excluding items, which was a shiny nickel north of expectations.
1. It was nice to see the beat, and its really been drilling (pun intended) through estimates pretty consistently this past year, which I'm sure has garnered it plenty of attention.
2. Over the last month of so, estimates have gotten bumped up for both this year and next year, which I like too.
3. My sense is that the shares could make a new 52-week high in the near-term as the investment community digests these results. But I just wonder what it's going to do for its next trick. At a little over 24 times this year's estimate, it's not exactly the cheapest stock out there and I think it will have to pull a decent rabbit out of its hat if it wants to see the mid- or high-$30s.
Justin Sharon points out that Natixis upped the company from Hold to Buy.
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