AMD Surges on Strong Q4 Results
AMD shares rose after it reported better-than-expected fourth-quarter financial results after the markets closed on Tuesday.
When Advanced Micro Devices Inc. (NASDAQ: AMD) reported its fourth-quarter financial results late on Tuesday, the firm said that it had $0.08 in earnings per share (EPS) on $1.48 billion in revenue. That compared with consensus estimates from Thomson Reuters of $0.05 in EPS on revenue of $1.4 billion. The same period of last year reportedly had a net loss of $0.01 per share and $1.11 billion in revenue.
During the latest quarter, revenue was up 34% year over year, primarily driven by strong sales of Radeon graphics and Ryzen processors. However, revenue was down 10% sequentially, largely due to seasonally lower sales of semi-custom system on chip platforms (SoCs).
At the same time, Computing and Graphics segment revenue totaled $958 million, up 60% year over year and 17% sequentially. The year-over-year and sequential increases were driven primarily by strong sales of Radeon graphics and Ryzen desktop processors.
Looking ahead to the first quarter, AMD expects to see revenue of approximately $1.55 billion, plus or minus $50 million, an increase of 32% year over year due to the strength of the ramp of new Ryzen, GPU and EPYC products. The consensus estimates call for $0.03 in EPS and $1.25 billion in revenue for the quarter.
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Dr. Lisa Su, AMD’s president and chief executive, commented:
2017 marked a key inflection point for AMD as we re-shaped our product portfolio, delivered 25 percent annual revenue growth, expanded gross margin and achieved full-year profitability. We are even more excited about 2018 as we launch our next wave of high-performance products and continue to position AMD as one of the premier long-term growth companies in the technology industry.
Shares of AMD traded up about 6% at $13.63 Wednesday morning, with a consensus analyst price target of $14.22 and a 52-week range of $9.70 to $15.65.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
