AMD Surges on Strong Q4 Results

By Chris Lange Updated Jan 12, 3:55AM EST · Published Jan 31, 10:10AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

AMD Surges on Strong Q4 Results — © Thinkstock

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.

[nativounit]

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.

[wallst_email_signup]

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.