Advanced Micro Devices (AMD) - Get Report posted modestly better-than-expected first quarter earnings Tuesday and forecast solid near-term sales amid improving chip demand and stronger pricing linked to the global semiconductor shortage.
AMD said non-GAAP earnings for the three months ending in March came in at 45 cents per share, a 150% increase from the same period last year and one penny ahead of the Street consensus forecast of 44 cents per share. Group revenues, AMD said, surged 92.7% to $3.45 billion, again topping analysts' forecasts of a $3.2 billion tally while gross margins were flat at 46%, but 1 basis point up from the fourth quarter thanks in part to "a greater mix of Ryzen, Radeon and EPYC processor sales".
Looking into the current quarter, AMD said it sees revenues in the region of $3.6 billion, with a range of plus or minus $100 million, and a non-GAAP gross margin of 47%. The revenue forecast compares to the Refinitiv-collected estimate of $3.29 billion.
“Our business continued to accelerate in the first quarter driven by the best product portfolio in our history, strong execution and robust market demand,” said CEO Dr. Lisa Su. “We had outstanding year-over-year revenue growth across all of our businesses and data center revenue more than doubled."
"Our increased full-year guidance highlights the strong growth we expect across our business based on increasing adoption of our high-performance computing products and expanding customer relationships,” she added.
AMD shares, which closed at $85.21 each after falling 0.23% on the session, were marked 3.95% higher in after-hours trading to indicate a Wednesday opening bell price of $88.50 each, a move that would trim the stock's year-to-date decline to around 3.5%.
For the full 2021 financial year, AMD said it sees revenues growing 50% from 2020 levels, indicating a total of around $14.65 billion.