Advanced Micro Devices Inc. (NYSE: AMD) reported fourth-quarter and full-year 2016 earnings after markets closed Tuesday. For the quarter, the chipmaker posted an adjusted net loss per share of $0.01 on revenues of $1.11 billion. In the same period a year ago, the company reported a net loss per share of $0.10 on revenues of $958 million. Fourth-quarter results compare to the Thomson Reuters consensus estimate for a net loss of $0.02 per share on $1.07 billion in revenues.
For the full year AMD reported a net loss of $0.14 per share on revenues of $4.27 billion compared with a net loss per share of $0.54 in 2015 on revenues of $3.99 billion. Analysts were looking for a net loss of $0.15 per share and 2016 revenues of $4.24 billion.
The good news, and what’s pushing the share price higher is the quarterly revenue beat and the first-quarter revenue forecast. The company said it expects first quarter revenues to rise by 18% year over year, amounting to $981.8 million at the midpoint. Analysts were expecting $962.72 million for the quarter.
Adjusted gross margin is estimated at 33% (up 1 point compared with the year-ago quarter) and adjusted operating expenses are forecast at $360 million. Analysts are looking for a net loss per share of $0.15.
For the full year AMD’s CFO noted that revenues are expected to grow year-over-year and “deliver non-GAAP income,” but gave no numbers. Capital spending is forecast at $80 million.
The company’s CEO, Dr. Lisa Su, said:
We met our strategic objectives in 2016, successfully executing our product roadmaps, regaining share in key markets, strengthening our financial foundation, and delivering annual revenue growth. As we enter 2017, we are well positioned and on-track to deliver our strongest set of high-performance computing and graphics products in more than a decade.
AMD’s shares closed at $10.37 Tuesday and traded up more than 3% in after-hours trading today, at $10.70, in a 52-week range of $1.81 to $12.42. The consensus price target for the shares was $9.95 before the report.