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Technology Stocks : AMD, ARMH, INTC, NVDA
AMD 259.65+2.3%3:59 PM EST
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To: Pravin Kamdar who wrote (46860)11/2/2022 6:30:19 PM
From: neolibRead Replies (1) of 73985
 
Well, it was accretive this last qtr because other segments bombed.

But my main complaint is they need to do correct compares of the combined business entities prior to the merger, or you get nonsensical numbers that make it look like your business "grew".

Imagine if a business B of approximately equal revenue to business A is acquired by A and both A & B have zero growth for the proceeding 12 months, and then during that post acquisition year the combined entity (A' lets say) has zero growth again, but it reports instead that it had 100% growth YoY. That is exactly what AMD is doing, and very few analysts point this out at all, although plenty of them point out that the "growth" in embedded was due to the purchase of Xilinx.

I spent a little time googling, and can't find any regulations on this. I know at times in the past other companies have restated the pre-merger financials to make the compares correct. But for some reason AMD is not doing that here, and I don't know why. But it leads to very distorted thinking.

BTW, Q1, and then Q2 of next year will bring this out clearly. Q1 will have a partial Xilinx component, and Q2 the full amount. You should expect to then see Lisa & Devinder start making excuses for the "low growth" that its due to the "difficult compares" of having Xilinx be added back in 2022. But they don't point out right now that the compares are benefiting from that event instead.
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