I don't want to be a donkey, but how did AMD top estimates?
AMD 7.58, +0.02, +0.3%) reported a fourth-quarter net loss of $1.772 billion, or $3.06 per share, compared with a loss of $576 million, or $1.08 per share, for the same period last year. Revenue for the period remained relatively flat at $1.77 billion — shy of the $1.79 billion expected by analysts, according to estimates from Thomson Financial.
It's dropped from a high of $41 in early 2006 to $7.58 and took a 1.7 billion write off on its ATI acquisition.
The company reported late Thursday its quarterly loss declined, excluding a $1.61 billion impairment charge for overspending on its 2006 acquisition of graphics chip maker ATI Technologies Inc.
Excluding such one-time items, AMD posted a loss 17 cents per share. Analysts polled by Thomson Financial, on average, expected a loss of 36 cents a share.
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Surely by now you know how the game is played. It's not always about how much money you actually make or lose .It's about meeting, beating, or falling short of expectations. 🙂
AMD, though in the crapper, posted a 17cents/share loss. Ah, but all the analysts were expecting much worse. Like I said, it might not make sense, but why did intel which pretty much made money, but came short of expectations drop 20+%, while amd, which lost money, rose after earnings about 13%. No expert here, but I think AMD probably has more potential to go up on rumors and momentum more so than intel at this point. Me thinks AMD pretty much flushed out a lot of bad news earlier . And i won't be surprised in theirs rumors of a takeover, buyout on the horizon. At $6/share a few days ago, it was cheap to take a chance. Highly speculative, but I figure that fund from UAE that invested in AMD at $8/share would be worse off 🙂
The impression i got from intel during the con-call was that they are hiding behind their numbers, just in case the recession does impact them- their saying they're not being hit by the recession, that the channels are good, and they expect to do just fine in Q1, yet they still didn't revise their q1 numbers.
Take a look at apple for another instance. Great company, great products, makes a hell of lot of money. Came short on analysts expectations. Stock gets wacked.
