While Asian and European economic markets are gradually entering the deconfinement phase, the situation is not the same everywhere. This means that the covid-19 pandemic continues to gain ground in Africa and the Americas, although there is a respite in some places. U.S. researchers are working to find the effective treatment so long awaited around the world. But everything remains to be done. The Covid-19 remains unbeatable and a cause for concern. With such an atmosphere of health crisis, companies are more cautious than ever in their various forecasts for the whole of the year 2020. Among these, we can cite the company AMD (Advanced Micro Devices) which announces annual forecasts while remaining cautious. The American company nevertheless posted first-quarter results in line with its estimates this Wednesday. Here are all the figures put forward by Intel's competitor.Trade AMD shares!
AMD is recognized in the American economic market as a manufacturer of microprocessors, flash memories, graphics cards, but also microcontrollers. It has its headquarters in the state of California, specifically in Santa Clara. It was founded on May 1, 1969. The 50-year-old American group has communicated some figures of its activity. It started with its net income, which it estimates at $162 million in the first quarter.
This figure corresponds to a total of 14 cents per share. But, the American giant recalls that at the same time in 2019, it was accumulating $16 million in net earnings. At the time, it was at 1 cent per share. In line with the Factset consensus, the AMD Group posted Q1 earnings per share of 18 cents. This increase was achieved in the absence of all extraordinary items.
On the American market, while the health crisis is not going away, President Trump remains determined for a reopening of the economy. He has never hidden it and deconfinement is already in force in some American states. It was in this atmosphere of financial market sentiment that Wall Street was aiming for $1.78 billion. At the same time, the AMD Group's sales (turnover) increased by 40% to $1.79 billion. A gain that remains quite significant.
The AMD Group, which was founded by a team of Fairchild Semiconductor executives and engineers, also commented on the future. The microprocessor designer started with an estimate for the second quarter. While remaining cautious, it hopes to reach an average of $1.85 billion in sales in Q2. It is therefore targeting an annual growth rate of 21% in Q2 (Wall Street is targeting $1.92 billion).
The most interesting thing in today's AMD Group publication remains its adjusted gross margin, which will be 44% in Q2. This margin recorded is logically below that of the first quarter (46%). On the other hand, AMD expects annual revenue growth of 25%. In the past these were 28 % to 30 %. Still, the adjusted gross margin of the giant AMD is expected to be 45 %.