Advanced Micro Devices (AMD) is set to report Q1 earnings tonight after the close with a conference call to follow at 5:30pm ET. AMD reported Q4 results at 4:05pm.

Current Capital IQ consensus stands at EPS of $0.09 on revenues of $1.56 bln. 

Guidance

AMD forecast Q1 revenues in the range of $1.50-1.60 bln. Gross Margin is expected to be approx 36%.

FY18 is expected to see double digit percentage growth in the annual revenue and Non-GAAP gross margins greater than 36% as it launches its new Ryzen and Epyc products.

Valuations

NVDA Forward P/E 27.3x; Forward EV/EBITDA 39.5x; P/Sales 13.5x

AMD P/E 18.5x; EV/EBITDA 28.7x; P/Sales 1.8x

INTC P/E 13.2x; EV/EBITDA 9.1x' P/Sales 3.8x

Options

Based on the AMD Weekly Apr27 $10 straddle, the options market is pricing in a move of ~9% in either direction by weekly expiration (Friday).

TECHS:

RESULTS

• Reports Q1 (Mar) earnings of $0.11 per share, $0.02 better thanthe Capital IQ Consensus of $0.09; revenues rose 39.8% year/year to $1.65 bln vs the $1.57 bln Capital IQ Consensus and 23 percent quarter-over-quarter, driven primarily by higher revenue in the Computing and Graphics segment. Computing and Graphics segment revenue was $1.12 billion, up 95 percent year-over-year and 23 percent quarter-over-quarter, primarily driven by strong sales of Radeon and Ryzen products.
• Co issues upside guidance for Q2, sees Q2 revs of $1.675-1.775 bln vs. $1.58 bln Capital IQ Consensus; adj. GM 37%.