The largest earnings surprise, on a percentage basis, should come from Advanced Micro Devices
(AMD) on Wednesday after the market closes. Early in the quarter the company gave guidance
indicating that the company's earnings would be flat and did not anticipate beating the previous
quarter's revenues of $969 million. Then on March 30th, Dan Niles at Robertson Stephens upped his
fiscal year forecast by $0.70 to $2.60 and five days later AMD pre-announced revenues of $1.06 billion
due to strong sales across the board and the shipment of more than 1.2 million Athlon chips. Other
analysts soon started raising their estimates as well and the consensus estimate has gone from $0.02
at the beginning of the quarter to its current level of $0.46 per share. The low estimate for AMD is $0.23
by Peter Wolf at ING Baring Furman Selz and the high estimate is $0.65 by A.A. LaFountain III at
Needham & Co. However, most analysts feel that the consensus estimate is conservative and feel
AMD will report earnings near $0.60 per share. Therefore, the Earnings Whisper number is $0.59.
Another strong earnings report from an online brokerage firm will come on Thursday from Ameritrade
(AMTD). The analysts' comments have been nearly the same for Ameritrade as they have been for
E*Trade. The company should report strong revenues due to heavy trading volumes. The only thing
holding back earnings will be marketing expenses, yet the company should still report earnings ahead
of the consensus estimates. Last quarter Ameritrade was one of the largest spenders per new account
and this quarter should be similar even though Greg Smith at Chase H&Q said this should be
decreasing in the future. However, many have pointed out that insiders have been buying over a half
million dollars in company stock within the past quarter, indicating that the company could report
strong earnings. The analysts have recognized this and increased their estimates from a loss of $0.09
to a penny loss with some analysts expecting the company to report positive earnings. The Earnings
Whisper number is for a gain of $0.07.
Ameritrade will report earnings before the market opens on Thursday and you may listen to the
company's conference call at www.amtd.com/html/investmain.html beginning at 10:00 AM ET on
Thursday.
(AMD) on Wednesday after the market closes. Early in the quarter the company gave guidance
indicating that the company's earnings would be flat and did not anticipate beating the previous
quarter's revenues of $969 million. Then on March 30th, Dan Niles at Robertson Stephens upped his
fiscal year forecast by $0.70 to $2.60 and five days later AMD pre-announced revenues of $1.06 billion
due to strong sales across the board and the shipment of more than 1.2 million Athlon chips. Other
analysts soon started raising their estimates as well and the consensus estimate has gone from $0.02
at the beginning of the quarter to its current level of $0.46 per share. The low estimate for AMD is $0.23
by Peter Wolf at ING Baring Furman Selz and the high estimate is $0.65 by A.A. LaFountain III at
Needham & Co. However, most analysts feel that the consensus estimate is conservative and feel
AMD will report earnings near $0.60 per share. Therefore, the Earnings Whisper number is $0.59.
Another strong earnings report from an online brokerage firm will come on Thursday from Ameritrade
(AMTD). The analysts' comments have been nearly the same for Ameritrade as they have been for
E*Trade. The company should report strong revenues due to heavy trading volumes. The only thing
holding back earnings will be marketing expenses, yet the company should still report earnings ahead
of the consensus estimates. Last quarter Ameritrade was one of the largest spenders per new account
and this quarter should be similar even though Greg Smith at Chase H&Q said this should be
decreasing in the future. However, many have pointed out that insiders have been buying over a half
million dollars in company stock within the past quarter, indicating that the company could report
strong earnings. The analysts have recognized this and increased their estimates from a loss of $0.09
to a penny loss with some analysts expecting the company to report positive earnings. The Earnings
Whisper number is for a gain of $0.07.
Ameritrade will report earnings before the market opens on Thursday and you may listen to the
company's conference call at www.amtd.com/html/investmain.html beginning at 10:00 AM ET on
Thursday.
