Advanced Micro Devices (AMD) is scheduled to release Q1 earnings this Thursday April 15, after the market close. Average analyst estimates for the chip maker are -$.08/share in EPS and $1.53 billion in Revenue. Twenty-one analysts track the stock with one upward EPS revisions in the last 30 days and no downward EPS revisions in the last 30 days. Last quarter, AMD beat average analysts expectations by $1.70/share, 1.52/share vs. -.18/share.
I always find this a tough period waiting to see if the company is going meet, exceed, or miss their earnings estimates. One thing I have discovered of value is to analyze sentiment moves in a stock ahead of the company’s earnings release. In the case of AMD, I will use the piqqem sentiment index for AMD to see how sentiment has changed in the last quarter, for the months within that quarter, and from the end of the reporting quarter thru today.
I’m looking for moves or changes that may foreshadow the earning release. (piqqem leverages the ‘wisdom of crowds’ by allowing its users to vote on the price direction of a stock and then applies its own propriety factors to calculate sentiment for a security. In their model, -100 is the lowest and 100 is the highest sentiment).
Sentiment for AMD
Source Piqqem
Is AMD simply riding Intel’s (INTC) coattails or is the processor underdog finally ready to deliver results similar to Broadcom (BRCD) and IBM (IBM)?
The above chart shows AMD’s sentiment rising by 19 points in the quarter. As a comparison, sentiment for the NASDAQ index was down 20 pts for the same period, making AMD’s sentiment rise even more impressive. On the Piqqem scale, AMD’s sentiment rating of 22.56 is considered a buy and absolute sentiment indicates a quality stock. Only AMD knows their actual results, but their current sentiment points to AMD delivering good news on Thursday.
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