Top 3 Earnings Today - AMD, Chipotle And AT&T

Will Advanced Micro Devices, Inc. (NASDAQ:AMD) deliver an earnings beat again?

Top 3 Earnings Today - AMD, Chipotle And AT&T

Dr. Lisa Su led Advanced Micro Devices, Inc. (NASDAQ:AMD) is all set to report its third-quarter fiscal 2017 earnings today after the markets close. Shares of the semiconductor company have yet not recovered from its sharp sell of after its second-quarter earnings in July end. AMD stock is still down nearly 5% since then. However, Shares of the Sunnyvale, California-based company had a good month so far gaining more than 10.5% ahead of earnings. So, the expectations for a strong earnings performance from AMD are as usual high.

The Wall Street expects the company to report an EPS of 8 cents per share on revenue of $1.51 billion. This numbers would translate into 167% YoY earnings growth and more than 300% sequential EPS growth. On the revenue front, the estimates suggest a 15.3% growth from the same quarter year ago. If one has to go by the company's recent earnings, it is highly likely that AMD would deliver a beat on both the top and bottom line. However, as we have seen in the last earnings, an earnings beat would not be enough for the stock to maintain the recently gained momentum. Given the recent emerging positives and tailwinds, we believe that AMD stock needs more than an earnings beat to keep flying higher.

AMD stock chart

Having said all this, for many investors the question now is, should one buy AMD stock ahead of earnings? For a detailed preview of the AMD stock's Q3 earnings and more insights about how to play AMD stock ahead of earnings, please go through our AMD earnings preview.

Can Q3 earnings lift Chipotle Mexican Grill, Inc. (NYSE:CMG) stock?

The second major earnings for the day is of the burrito chain Chipotle Mexican Grill (NYSE:CMG)Shares of the Denver, Colorado-based company are on a steady recovery path in October gaining more than 6%. However, CMG stock is still quite some distance from a full recovery with the stock still being down more than 15% in the YTD and more than 31% in the last six months. Now, all eyes are on the company's Q3 earnings to accelerate the recovery in Chipotle shares. Wall Street expects the company to report a revenue of $1.1 billion, translating to a 9.7% YoY rise. Coming to earnings, the Street's consensus estimate for EPS is a non-GAAP earnings of $1.63 per share, bettering the year-ago quarter by a massive $1.36, a 503% YoY increase. The earnings growth might seem very impressive but investors need to keep in mind that a year ago, Chipotle had still not shaken off the E.coli crisis effect. At that time of the year, the company's expenditure on loyalty programs and new safety procedures was also very high. The investor sentiment is still muted despite stupendous earnings growth estimates as the top-line growth is not that encouraging for future growth. The analyst estimates are also comparatively lower on account of the company's recent troubles this year.

Chipotle stock sentiment

However, there has been a slow change of investor sentiment but still, a lot needs to be done. Many are betting on the company's queso product to boost revenues. Chipotle needs to deliver a significant surprise on either the comparable sales, earnings per share, or overall revenue to boost investor sentiment and give a strong message that its recovery is going strong. Same-store sales growth is another metric which would be closely watched during the earnings. The CMG stock technical chart suggests, of late the stock has found support at the 20-day and 50-day simple moving averages (SMA). A strong Q3 earnings is a must to continue the recovery in CMG share price, any negative news could send the stock crashing again.

AT&T Inc. (NYSE:T) Q3 2017 Earnings Preview.

Wireless communications giant AT&T (NYSE:T) is scheduled to report its third-quarter fiscal 2017 earnings today after the closing bell. AT&T stock is still trading near its 52-week low and there are only more fears ahead of the Q3 earnings. The impending multi-billion dollar Time Warner (NYSE:TWX) acquisition deadline has been further extended and investors could expect an update on the closure date to secure the final regulatory approval. Moving on to the earnings, the telecom giant's revenue growth has stagnated for a few quarters now. Wall Street consensus expects the company to report an EPS of 75 cents per share and a revenue of $40.12 billion. The analyst estimates imply a decline in revenue by nearly 2% YoY and a marginal 1 cent increase in earnings YoY.T revenue chart

The revenue number could be under pressure as the company came out earlier and stated that the hurricanes over the past two months and the earthquake in Mexico are really going to have a significant impact on the financials of the company. The chances of the company meeting expectations are high, since it has met earnings expectations 5 times in the last 8 quarters. The earnings whisper number though happens to be 77 cents per share, suggesting the company may deliver a narrow beat on earnings estimates.

Some other notable earnings today are McDonalds (NYSE:MCD)Caterpillar (NYSE:CAT) and General Motors (NYSE:GM). Mcdonalds, CAT and GM are scheduled to report earnings before the market open. The Wall Street estimates for Mcdonalds are an EPS of $1.77 per share and a revenue of $5.74 billion. The food chain reported an EPS of $1.76 on revenue of $5.75 billion. Analysts expect Caterpillar company to report earnings of $1.27 per share on revenue of $10.63 billion. Caterpillar crushed estimates as the company posted earnings of $1.95 per share and reveneu of $11.4 billion. Coming to General Motors, the Street estimates an EPS of $1.13 per share on a revenue of $32.67 billion. General Motors too blew past estimates delivering a massive beat on both top and bottom line, EPS came in at $1.32 and revenue at $33.62 billion.

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Sreekanth Anasa Sreekanth Anasa   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

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