Interest income vs. expense
I have written a few posts already on WO:AMD quite a while
ago and I'm interested in hearing comments also from you.
Its not a big factor, when it comes to earnings, when we
assume that AMDs momentum is further in place. But when I
look at the added cash side (huge) and the falling debt,
I have to wonder, how interest expense and income will
correlate in the future.
I looked here:
amd.com
amd.com
So the last quarters looked like this:
Expense mio:
Q2=25,6
Q3=30,6
Q4=24,5
Income:
Q2=3,9
Q3=6,05
Q4=0,45
When I make a sum, its a down for AMD in the region of 20-25
Mio. which is a net 5C loss plus or minus 1 point.
Q4 seems a little bit wacky because of the spansion IPO, so
my estimate is, that AMD should have had around 7-9Mio.
income and I see 11-13Mio. for Q1, when this is "correct"
Also the expense side should go down, probably not as big
in Q1 but more in Q2, when the notes went out. So, my
sentiment is, that we could enter Q2 with nearly 13-15Mio.
income and (???) with 15Mio (???) on the expense side. So
this would mean a NULL for AMD. I mentioned this, not a
huge factor, but when we could establish this and these are
my thoughts, this would add around 20C for a full year EPS.
Assume more Cash for AMD because Cash Flow is very good, we
could also reach 1-2 cent a quarter better. So a net 25C
gain is not that out of reach. Comments?
BUGGI |
