Strong Earnings Season Continues
AMD, a major semiconductor company, posted earnings per share (EPS) of $0.52 to top $0.47 expected from Wall Street for the company’s Q4 2021. The business also reported a revenue of $3.24 billion, which is higher than the $3.03 billion expected from market analysts.
“We significantly accelerated our business in 2020, delivering record annual revenue while expanding gross margin and more than doubling net income from 2019,” said Dr. Lisa Su, president and CEO of the company, in a statement.
Looking forward, the semiconductors business said it forecasts its revenue in a range between $3.1 billion and $3.3 billion as it expects to see a business growth of 37%.
“Our 2021 financial outlook highlights the strength of our product portfolio and robust demand for high-performance computing across the PC, gaming and data center markets. We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our leadership product roadmaps,” Su added.
Analysts were quick to praise the company for yet another “beat-and-raise.” Rosenblatt analyst Hans Mosesmann raised the price objective on the AMD stock following last night’s results.
“Another strong beat and raise for AMD with an onslaught of new products that just keep coming driving the outlook for 1Q21 of better than seasonal and 2021 to up +37% y/y,” the analyst wrote.
Starbucks also saw its business expand in Q1 to help the company beat earnings estimates. The business reported earnings per share of $0.61 on an adjusted basis to top the $0.55 per share expected from analysts.
Business revenue came in at $6.75 billion to miss the Street’s expectations of $6.93 billion amid fresh lockdown restrictions.
“Our results demonstrate the continued strength and relevance of our brand, the effectiveness of the actions we’ve taken to adapt to changes in consumer behavior and the steadfast commitment of our green apron partners to serve our customers and communities. We remain optimistic about our robust operating outlook for fiscal 2021 as well as our ability to unlock the full potential of Starbucks to create value for our stakeholders,” Kevin Johnson, president and CEO of the company, said.
Starbucks stock price traded 5.2% lower at $99.25.
AMD and Starbucks reported higher-than-expected earnings for the prior quarter, although their shares fell on Wednesday’s trading as the stock market corrected from the fresh all-time highs.
About the Author
As an analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in Advanced Analytics & Media.