3 Stocks to Watch on Wednesday: Advanced Micro Devices, Inc. (AMD), The Coca-Cola Co (KO) and United States Steel Corporation (X)

Advertisement

AMD - 3 Stocks to Watch on Wednesday: Advanced Micro Devices, Inc. (AMD), The Coca-Cola Co (KO) and United States Steel Corporation (X)

Source: Shutterstock

Tuesday was a broad up-day for American markets, led by a big 1.3% push in financial stocks ahead of today’s Federal Reserve policy meeting statement. The S&P 500 moved forward by 0.3% to record highs, the Dow Jones Industrial Average gained 0.5% and the Nasdaq Composite wafted up a fraction and the Russell 2000.

3 Stocks to Watch on Wednesday: Advanced Micro Devices, Inc. (AMD), The Coca-Cola Co (KO) and United States Steel Corporation (X)Several companies posted their quarterly earnings data after hours Tuesday, including Advanced Micro Devices, Inc. (NASDAQ:AMD), AT&T Inc. (NYSE:T) and United States Steel Corporation (NYSE:X).

Here’s how these stocks performed ahead of Wednesday’s action

Advanced Micro Devices, Inc. (AMD)

AMD stock is headed for a monster day Wednesday after unveiling a surprise profit for its fiscal second quarter.

Wall Street analysts were predicting a breakeven quarter for the chipmaker, but AMD came out swinging with a 2-cent adjusted profit. Revenues of $1.22 billion were 19% better year-over-year and came ahead of expectations for $1.16 billion.

Better still, Advanced Micro provided uplifting guidance, including projections that revenues will increase 15% for the full quarter, which would be around $1.5 billion — better than the current consensus estimate. For the full year, AMD expects to hit mid- to high teens in revenue growth, also better than expectations. Non-GAAP gross margins are being guided to 34% for the full year.

Pushing AMD’s second-quarter strength was a 51% YOY improvement in Computing and Graphics revenues.

AMD stock is up 10% this morning, extending 20%-plus gains for the year-to-date.

The Coca-Cola Co (KO)

KO shares are headed higher in Wednesday’s early-morning trade in the wake of a beat on both the top and bottom lines.

For its second quarter, Coca-Cola’s net income plunged 60% to $1.37 billion (32 cents per share). Though on an adjusted basis, EPS of 59 cents was a pair of pennies ahead of Wall Street’s pros.

Revenues also declined, though at 16%, not as much, and spurred by continued bottling franchising. The total sales figure of $9.7 billion still was enough to get past Wall Street expectations.

The company also provided upgraded earnings guidance. Coca-Cola now expects EPS to come in either flat or down 2% year-over-year, better than the 1%-3% decline it previously forecast.

KO looks to extend its 9% run in 2017, though only so slightly, with shares registering marginal gains early Wednesday.

United States Steel Corporation (X)

Lastly, X stock is up solidly after the steelmaker posted impressive second-quarter results Tuesday night.

Profits came to $261 million ($1.48) per share, flipping from the year-ago period’s loss of $46 million (32 cents). Adjusted earnings came to $1.07 per share, which was nearly triple estimates for 36 cents per share.

Meanwhile, sales of $3.14 billion were up 22% YOY and got past estimates for $2.97 billion.

U.S. Steel attributed its successful period to rising steel prices, higher output at its iron ore operations, as well as a gain of 41 cents per share ($72 million) thanks to the sale of one of its Canadian operators.

The company predicts that it will earn $1.70 per share for the fiscal year 2017, granted prices, demand and other market conditions remain the same.

X stock is on pace to open Wednesday’s trade up 8%.


Article printed from InvestorPlace Media, https://investorplace.com/2017/07/3-stocks-to-watch-on-wednesday-advanced-micro-devices-inc-amd-the-coca-cola-co-ko-and-united-states-steel-corporation-x/.

©2024 InvestorPlace Media, LLC