AMD Soars 22%: Q1 Beats, Q2 View Rev Crushes Consensus
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By Tiernan Ray
Chip maker Advanced Micro Devices (AMD) this afternoon reported Q1 revenue that topped analysts’ expectations, and a net loss that was better by a penny per share, and forecast revenue this quarter well above what the Street has been modeling, sending its shares surging in late trading.
Revenue in the three months ending in March declined to $832 million, yielding a net loss of 12 cents a share.
Analysts had been modeling $818 million and 13 cents a share.
On a GAAP basis, the company lost 14 cents a share.
Gross profit margin in the quarter was 32%, up 2 points from the prior quarter, which the company was primarily a result of “a richer product mix and the mix of revenue between business segments.”
CEO Lisa Su said that “Our strategy to build a strong business foundation and improve financial performance through delivering great products is beginning to show benefits.”
Added Su,
We continued to strengthen the performance of our Computing and Graphics business as our customers and partners show a growing preference for AMD. We are optimistic about our growth prospects in the second half of the year across our businesses based on new product introductions and design wins.
This quarter, the company sees revenue rising by 12% to 18% from last quarter, which would be $932 to $982, well above consensus for $890 million for the June quarter.
AMD shares are up 51 cents, or 20%, at $3.13.
Update: Shares keep adding to gains, now up 58 cents, or 22%, at $3.20.
Update 2: Digging through the release, AMD cites its “computing and graphics” division as having revenue of $460 million, which was down from $532 million a year earlier.
Its “enterprise, embedded and semi-custom” division saw sales fall to $372 million from $498 million a year earlier.
