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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 Advanced Micro Devices, Inc. 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. 

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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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