AMD Rallies After Top- & Bottom-Line Beat, In-Line Forecast

AMD Rallies After Top- & Bottom-Line Beat, In-Line Forecast

Relative to Intel’s epic-fail, AMD stepped up to the plate after the bell and hit the ball out of the park.

AMD’s headline Q4 revenue figure beat expectations at $5.6 billion (vs $5.52 billion consensus) and EPS beat at 69c (vs 67c consensus).

But, growth across its embedded and data center segments was partially offset by lower client and gaming segment revenue.

And notably, the company’s operating expenses jumped to $2.56 billion from $1.22 billion a year earlier.

But crucially, unlike Intel’s big guide lower, AMD’s guide was only very marginally lower than consensus:

Revenue will be as much as $5.6 billion in the period, AMD said in a statement Tuesday, compared with an average analyst prediction of $5.56 billion.

Though a less severe drop than expected, the outlook represents the company’s first year-over-year quarterly sales decline since 2019, ending a growth streak that elevated AMD into the upper ranks of the chip industry.

“2022 was a strong year for AMD as we delivered best-in-class growth and record revenue despite the weak PC environment in the second half of the year,” said AMD Chair and CEO Dr. Lisa Su.

“We accelerated our data center momentum and closed our strategic acquisition of Xilinx, significantly diversifying our business and strengthening our financial model. Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio.”

AMD’s share prices are surging after-hours, back near December highs…

Lisa Su dunks on Pat Gelsinger…

Tyler Durden
Tue, 01/31/2023 – 16:33

via ZeroHedge News Tyler Durden

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