February 1, 2023
Advanced Micro Devices (AMD) overcame Wall Street’s fourth-quarter expectations by exceeding Wall Street’s targets.
It also predicted that business would improve in the second half, enthusing investors who saw the company gaining ground on rival Intel. Nonetheless, AMD stock rose in extended trading on the back of strong data center chip sales.
After-hours trading saw a 1.5 percent increase in shares. Although AMD’s forecast fell short of expectations, it was not as bad as some had feared. In addition, the company earned an adjusted 69 percent share on $5.6 billion in sales in the December quarter. FactSet polled analysts, expected AMD to earn 67 cents per share on sales of $5.51 billion.
AMD’s earnings fell 25% year on year, while sales increased 16%. The Xilinx acquisition increased revenue and helped to offset declining PC and gaming chip sales. AMD’s Data Center segment revenue increased 42% to $1.7 billion in the fourth quarter, offsetting a 51% drop-in client segment revenue, which included PCs, at $903 million. According to IDC data, PC shipments will fall 16.5% to 292.3 million units in 2022.
Revenue increased 16% year on year to $5.60 billion in the fourth quarter. According to Refinitiv data, analysts expected revenue of $5.50 billion on average. Revenue for the current quarter is expected to be $5.3 billion, plus or minus $300 million. According to Refinitiv data, analysts expect revenue of $5.48 billion on average.
The sources for this piece include an article in Reuters.
