What Boosted AMD’s Q1 Earnings?
Advanced Micro Devices shares surged after it reported its first-quarter financial results late on Wednesday.
When Advanced Micro Devices Inc. (NASDAQ: AMD) reported its first-quarter financial results after the markets closed on Wednesday, the company posted $0.11 in earnings per share (EPS) on $1.65 billion in revenue. The consensus estimates from Thomson Reuters had called for $0.09 in EPS on revenue of $1.57 billion. The same period of last year reportedly had a net loss of $0.04 per share and $984 million in revenue.
Revenue increased 40% year over year and 23% quarter over quarter, driven primarily by higher revenue in the Computing and Graphics segment.
In terms of its segments, the firm reported:
- Computing and Graphics segment revenue was $1.12 billion, up 95% year-over-year and 23% quarter-over-quarter, primarily driven by strong sales of Radeon and Ryzen products.
- Enterprise, Embedded and Semi-Custom (EESC) segment revenue was $532 million, down 12% year-over-year due to lower semi-custom revenue.
- All Other operating loss was $32 million compared with operating losses of $23 million a year ago and $22 million in the prior quarter.
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For the second quarter of 2018, AMD expects revenue to be roughly $1.725 billion, plus or minus $50 million, an increase of 50% year over year, and with a gross margin of about 37%. The consensus estimates call for $0.09 in EPS on $1.57 billion in revenue for the quarter.
On the books, AMD’s cash and cash equivalents totaled $1.05 billion at the end of the quarter, down from $1.19 billion at the end of the previous fiscal year.
Dr. Lisa Su, AMD president and CEO, commented:
The first quarter was an outstanding start to 2018 with 40 percent year-over-year revenue growth. PC, gaming and datacenter adoption of our new, high-performance products continues to accelerate. We are excited about our long-term roadmaps and focused on delivering sustained revenue growth and profitability.
Shares of AMD were last seen up about 14% at $11.08, with a consensus analyst price target of $13.84 and a 52-week range of $9.04 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.
