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May 1, 2019, 7:25 a.m. EDT

AMD stock rallies after hours as earnings top Wall Street estimates

EPS topped by a penny, revenue by $10 million

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By Wallace Witkowski, MarketWatch


AMD

Advanced Micro Devices Inc.’s stock surged in the extended session Tuesday after the chip maker topped Wall Street estimates for the quarter.

AMD shares /zigman2/quotes/208144392/composite AMD +0.06%   rallied 3% after hours, following a 0.2% decline to close the regular session at $27.63, and were up 5% premarket Wednesday. In comparison, the PHLX Semiconductor Index /zigman2/quotes/210598361/realtime SOX -0.53%  closed up 0.8%, the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.20% closed up 0.1%, and the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.13% finished down 0.8%.

The company reported first-quarter net income of $16 million, or 1 cent a share, compared with $81 million, or 8 cents a share, in the year-ago period. Adjusted earnings were 6 cents a share. Of the 28 analysts surveyed by FactSet, AMD on average was expected to post adjusted earnings of 5 cents a share.

Revenue declined to $1.27 billion from $1.65 billion in the year-ago quarter. Wall Street expected revenue of $1.26 billion from AMD, according to 28 analysts polled by FactSet.

“We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year,” said Lisa Su, AMD’s president and chief executive, in a statement. “We look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth.”

The company said that its year-over-year revenue decline was “primarily due to lower graphics channel sales, partially offset by increased client processor and datacenter GPU sales.”

Computing and graphics sales declined to $831 million from $1.12 billion in the year-ago quarter. Analysts surveyed by FactSet expected computing and graphics sales to decline 23% to $855.7 million from the year-ago quarter.

Enterprise, embedded and semi-custom sales declined to $441 million from $532 million in the year-ago period. Analysts expected $410.2 million.

For the second quarter, AMD expects revenue of $1.47 billion to $1.57 billion, while analysts expect revenue of $1.51 billion.

/zigman2/quotes/208144392/composite
US : U.S.: Nasdaq
$ 36.31
+0.02 +0.06%
Volume: 43.57M
Nov. 11, 2019 4:00p
P/E Ratio
187.55
Dividend Yield
N/A
Market Cap
$40.44 billion
Rev. per Employee
$641,089
loading...
/zigman2/quotes/210598361/realtime
US : Nasdaq
1,727.59
-9.19 -0.53%
Volume: 126,016
Nov. 11, 2019 5:16p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,087.01
-6.07 -0.20%
Volume: 1.41B
Nov. 11, 2019 5:04p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
8,464.28
-11.04 -0.13%
Volume: 1.59M
Nov. 11, 2019 5:16p
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Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski.

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