Advanced Micro Devices Inc. (NASDAQ: AMD) reported second-quarter 2017 earnings after markets closed Tuesday. For the quarter, the chipmaker posted adjusted earnings per share (EPS) of $0.02on revenues of $1.22 billion. In the same period a year ago, the company reported a net loss per share of $0.05 on revenues of $1.03 billion. Second-quarter results compare to the Thomson Reuters consensus estimate for break-even quarter on $1.16 billion in revenues.
Operating income totaled $25 million on a GAAP basis and $49 million on an adjusted basis. The GAAP net loss totaled $16 million, far below the year-ago quarter’s net loss of $73 million.
For the third quarter AMD expects revenues to rise between 20% and 26% sequentially. At the midpoint the revenue hike would be approximately 15% year over year. AMD now expects annual revenue to increase by a mid to high-teens percentage, compared to prior guidance of low double digit percentage revenue growth.
Adjusted gross margin rose to 33% (up 2 percentage points) year over year in the second quarter.
For the full year AMD’s CFO noted that revenues are expected to grow year-over-year by a mid- to high-teens percentage. Adjusted gross margin is expected to come in at 34% and the company expects to post an adjusted profit for the year. Capital spending is forecast at $140 million.
The company’s CEO, Dr. Lisa Su, said:
Our second quarter results demonstrate strong growth driven by leadership products and focused execution. Our Ryzen desktop processors, Vega GPUs, and EPYC datacenter products have received tremendous industry recognition. We are very pleased with our improved financial performance, including double digit revenue growth and year-over-year gross margin expansion on the strength of our new products.
AMD’s shares closed at $14.11 Tuesday and traded up more than 7% in after-hours trading today, at $15.15, in a 52-week range of $5.66 to $15.55. The consensus price target for the shares was $12.85 before the report.