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.
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.