AMD Shares Fall Despite Beating Q4 Earnings and Sales Estimates

The chip designer handily beat analyst estimates for the fourth quarter, as well as expectations for the current quarter.
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Chip designer AMD  (AMD) - Get Report beat expectations for the fourth quarter as well as for the current quarter, but that apparently wasn't enough for investors. 

TheStreet is live blogging AMD’s fourth-quarter earnings report. Please join us!

AMD reported adjusted earnings per share of $0.52 versus analyst expectations of $0.47 for the fourth quarter, and revenues of $3.24 billion vs. expectations of $3.03 billion.

Shares initially rose after the release of the report but were lately trading down 1.43% to $93.36 in after-hours trading. 

AMD projected revenues of $3.1 billion to $3.3 billion for this year’s first quarter, well above analysts’ consensus estimates of $2.72 billion. For the entire year, AMD is guiding for revenue to grow 37%, also ahead of consensus estimates of roughly 28%.

For the fourth quarter, AMD's Computing and Graphics segment reported revenue of $1.96 billion, up 18% year-over-year on strong sales of its Ryzen processors. The company's Enterprise, Embedded and Semi-Custom segment reported Q4 revenue of $1.28 billion, up 176% year-over-year, driven by higher semi-custom and EPYC data center processor sales.

For the full 2020 year, the company reported revenue of $9.76 billion and on a non-GAAP basis, net income of $1.58 billion and diluted EPS of $1.29. 

The company’s full-year gross margin was 45%, up 2 percentage points over 2019. AMD said the improvement was mainly due to strong sales of its Ryzen and EPYC processors. 

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