AMD Bernstein conference summary feat. HPE/HPQ/DELL earning call key takeaway
Bernstein 5/28
*5nm products seems won’t released this year ( answer to Digitimes rumor)
*dividend won’t be AMD’s first priority, but will still payout (cash usage question)
*market share meet 20% but in AMD’s type calculation methods
*seems price war won’t show out (AMD will more focus on tech ’cause price war is not good for them and competitors)
*Navi2 will be announced next few months
*Milan released at the end of this year, start to ship in 4Q
*2H consumer market’s demand might be soft, moreover 2Q is relatively strong than 1Q
*AMD stated that 5nm will heavily weigh in roadmap but no any timing disclosed.
*NB/PC mkt share now in high teens, and PC’s rev. is going to grow mid-teens over the next 3–5 yrs.
HPE 5/21 concall takeaway :
2Q result miss mark (Rev -16% YoY and below consensus, EPS $0.22 consensus$0.29), due to supply chain constraints
Slash cost over next three years, they are planned to have $1B gross saving to incur cash outflows $1–1.3B through 2022.
Withdraw full-year guidance and declined to provide next quarter(3QFY20) guidance. “Due to the uncertainty and consistent with our April 6, 2020 8-K filing where we withdrew our fiscal year 2020 financial guidance, we will not be providing any Q3 or fiscal year 2020 guidance.”
COVID-19 issues make enterprise customers trim IT budget and hybrid infrastructure segment is against trend to hyper-scale cloud workflows and storage.
Margins headwind (CS believes DRAM prices will increase in 2H)
HPQ 5/27 concall takeaway :
1.Rev miss (results $12.5B vs consensus $12.8B), due to supply chain issues offset WFH demand
2.Lackluster F3Q (July 2020) guidance :guided 3Q EPS down ( $0.35-$0.41 with midpoint of $0.38 vs consensus $0.47 )
3.WFH momentum is no longer a catalyst. 2H PC market is expected to be tough
4.management postpone use of leverage to execute “Value Creation Plan” aka share buyback.
5.Win10 tailwind faded
5/28 DELL key takeaway from concall :
1.F1Q results beat expectation( results of EPS/Rev $1.34/$21.9B vs consensus $0.96/$20.7B) , due to WFH and supply chain execution allowed Dell to meet orders demand when peers could not.
2.Dell expect Q2 revenue to be seasonally lower than prior years, which has typically been up to 6% to 8%
sequentially from the first quarter and remain FY21 guidance withdrawn.
3.win shares in commercial PC(+1.8% to 26.2% in Q1), storage and servers across multiple categories.
4.Long-awaited products, PowerStore storage solutions and a broader portfolio of multi-cloud solutions.
Source: AMD investor relation’s website, seeking alpha earning conference transcript, broker report
