After-Hours Earnings Preview: AMD
Posted by Brooks McFeely on Thu, Apr 17, 2008 @ 10:18
The semiconductor sector is one to watch in the after-hours following Intel’s (INTC) better than expected earnings and explosive surge after the bell Tuesday. The next headliner in this sector is Advanced Micro Devices (AMD) which is expected to report Q1 results tonight after the close. The Thomson FC mean is for a loss of $0.51 per share on $1.5 billion in revenue.
AMD is favoring a narrowing trend in the near-term, with three narrowing events in the last four quarters; the exception coming in the most recent quarter. Over the long-term, AMD favors a narrowing pattern, either cutting back or reversing its evening trade nine times in the last 15 events, and seeing flat trade between the sessions in another instance.
On Jan. 17, 2008, the stock gained 4.3% during evening trading after AMD reported a sales miss. The gain swelled to 11.5% the next day.
On Oct. 18, 2007, AMD clawed 0.3% higher in after-hours trade after beating Q3 expectations. It couldn't hold on to this slight gain and closed the Oct. 19 regular session with a deep 5.1% decline.
On July 19, 2007, AMD jumped 4.5% in after-hours trade after beating Q2 revenue expectations. It lost that gain the following day, ending the July 20 regular session down 1.7%.
On April 19, 2007, the stock was up 0.8% after revenues decline vs a year ago and the company guides for revs in line to up slightly. Shares ended down 1.4% the next day.
On January 23, 2007, AMD dropped 4.3% in night trade after beating Q4 sales estimates but guiding Q1 below Street views. Shares tumbled further the next day, ending the regular session down 8.4%.
History indicates a trade against the trend after-hours this evening is the best play. In other words, the stock tends to over react in the after-hours following its earnings relative to the following day's regular session close.