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AMD reports quarterly revenue above $3 billion for first time, forecasts strong 2021

AMD reports quarterly revenue above $3 billion for first time, forecasts strong 2021

Advanced Micro Devices Inc. shares rose in the extended session Tuesday after the chip maker topped $3 billion in quarterly revenue for the first time while its results and outlook both topped Wall Street estimates.

AMD
AMD,
+0.62%
shares rose 2.5% after hours, following a 0.6% rise in the regular session to close at $94.71.

AMD reported fourth-quarter net income of $1.78 billion, or $1.45 a share, compared with $170 million, or 15 cents a share, in the year-ago period. After adjusting for stock-based compensation and other factors, the chip company reported earnings of 52 cents a share, compared with 32 cents a share in the year-ago period. Revenue rose to $3.24 billion from $2.13 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast adjusted earnings of 47 cents a share on revenue of $3.03 billion.

AMD reported fourth-quarter sales of $1.96 billion for computing and graphics chips, up 18% from $1.66 billion last year, compared with analyst expectations of $1.8 billion. Sales from enterprise embedded and semi-custom chips — the unit that includes data-center and gaming-console revenue — were $1.28 billion, up 176% from $465 million a year ago, compared with analysts’ average forecast of $1.24 billion.

“Our 2021 financial outlook highlights the strength of our product portfolio and robust demand for high-performance computing across the PC, gaming and data-center markets,” said AMD President and CEO Lisa Su in a statement. “We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our leadership product roadmaps.”

The company expects first-quarter revenue between $3.1 billion and $3.3 billion, and 2021 revenue to rise about 37%, or to about $13.37 billion.

Analysts expect first-quarter revenue of $2.72 billion, and 2021 revenue of $12.26 billion.

Over the past 12 months, AMD shares have gained 88%. In comparison, the PHLX Semiconductor Index 
SOX,
-1.54%
rose 58% over that time, the S&P 500 index
SPX,
-0.15%
gained 17%, and the tech-heavy Nasdaq Composite Index
COMP,
-0.07%
rose 46%.

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Erin Clark

Erin is a sports enthusiast who loves indulging in occasional football matches. She is a passionate journalist who flaunts a perfect hold over the English language. She currently caters her skills for the sports and health section of Report Door.

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