Advanced Micro Devices, Inc. (NASDAQ: AMD) released its most recent quarterly results after the markets closed on Wednesday. The company said that it had $0.13 in earnings per share (EPS) and $1.65 billion in revenue, which compares with consensus estimates from Thomson Reuters that called for $0.13 in EPS and $1.7 billion in revenue. The third quarter from last year had $0.10 in EPS and $1.64 billion in revenue.
The revenue growth was driven by higher client revenue in the Computing and Graphics business segment. The sequential decrease in revenue was driven by lower graphics revenue in the Computing and Graphics business segment. Third quarter revenue included IP-related revenue, of which $86 million was related to the THATIC joint venture.
In terms of its segments the company reported:
- Computing and Graphics segment revenue was $938 million, up 12% year-over-year and down 14% quarter-over-quarter. Year-over-year revenue growth was primarily driven by strong sales of Ryzen desktop and mobile products.
- Enterprise, Embedded and Semi-Custom segment revenue was $715 million, down 5% year-over-year and up 7% quarter-over-quarter. The year-over-year revenue decrease was driven primarily by lower semi-custom product and IP-related revenue.
The company plans to issue guidance on its conference call. Consensus estimates are calling for $0.11 in EPS and $1.6 billion in revenue for the fourth quarter.
Dr. Lisa Su, AMD President and CEO, commented:
We delivered our fifth straight quarter of year-over-year revenue and net income growth driven largely by the accelerated adoption of our Ryzen, EPYC and datacenter graphics products. Client and server processor sales increased significantly although graphics channel sales were lower in the quarter. Looking forward, we believe we are well positioned for further market share gains as we continue making significant progress towards our long-term financial targets.
Shares of AMD closed Wednesday at $22.79, with a consensus analyst price target of $26.71 and a 52-week range of $9.04 to $34.14. Following the announcement the stock was down 16% at $19.05 in the after-hours session.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
