What Boosted AMD’s Q1 Earnings?

By Chris Lange Updated Jan 12, 12:26AM EST · Published Apr 26, 12:00PM EDT

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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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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.