Shares of Advanced Micro Devices Inc (NASDAQ: AMD) are up more than 5.0% in extended trading after the semiconductor company reported market-beating results for its fiscal Q1. The company also raised its future guidance on acquisition of Xilinx and strong data centre revenue.
AMD Q1 earnings snapshot
Earned $786 million in the first quarter versus the year-ago figure of $555 million.Per-share earnings of 56 cents were better than last year’s 45 cents.Adjusted earnings on a per-share basis were $1.13 in the recent quarter.Revenue jumped 71% YoY to $5.89 billion, as per the earnings press release.Computing and graphics revenue was up 33%, ahead of Street expectations.Data-centre and console segment soared 88%, also beating estimates.
Gross margin stood at 48%. According to CEO Lisa Su, she’s not very concerned about the weakness in the PC market.
Future outlook and Larry Cordisco’s remarks
For the fill financial year, AMD now forecasts $26.3 billion in revenue versus $21.5 billion it had guided for earlier. It expects $6.5 billion in revenue this quarter. This compares to analysts at $5.14 billion revenue for Q2 and $21.48 billion for the year.
The American multinational now sees gross margin at 54% in 2022. On CNBC’s “Closing Bell”, Osterweiss Capital Management’s Larry Cordisco said:
People were nervous about PC sales, the segment was really strong. Guide for the next quarter looks really strong. And gross margin was where we expected. So, I’d say it’s a pretty good report.
Cordisco dubs AMD down 40% for the year as “reasonably valued”. The fact that it continues to steal share in data centre from Intel, he added, is reason enough to believe that AMD can withstand the feared weakness in the PC market.
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