AMD(AMD-US) on Tuesday (3rd), the US stock market announced its first-quarter financial report following the market. Revenue increased by more than 70% year-on-year and exceeded the US$5 billion mark for the first time. It was optimistic regarding data center demand to drive performance growth, and raised its full-year outlook. Due to Q2 AMD’s stock price rose more than 7% following the market and its full-year revenue forecast were both better than expected.
Q2 and F2022 full year financial forecast
- Q2 sales: $6.5 billion (±$200 million) vs. Refinitiv average estimate of $6.38 billion
- Q2 gross profit margin (Non-GAAP): regarding 54%
- Full-year sales: ~$26.3 billion, up 60% year over year, better than prior guidance of $21.5 billion, Refinitiv average estimate of $25.145 billion
- Full-year gross margin (Non-GAAP): ~54%, better than previous guidance of 51%
AMD CEO Lisa Su said that EPYC’s server chip revenue has doubled for three consecutive quarters. Compared with last year, each business has achieved double-digit growth in the last quarter. He is optimistic regarding the existing business and Xilinx. The deal boosted full-year results.
In response to the weak PC market, Su Zifeng said that AMD’s focus is still on the high-end, gaming and commercial areas of the market, which have strong growth opportunities and opportunities to continue to increase market share in client revenue.
As of press time, AMD shares rose 6.77% to $97.30 per share in following-hours trading. The stock closed up 1.44 percent at $91.13 a share on Tuesday.
Q1 (as of March 26) financial report key figures (Non-GAAP)
- Sales: $5.89 billion, up 71% year over year, beating Refinitiv expectations of $5.52 billion
- Gross profit margin: 53%, compared to 46% in the same period last year
- Profitability: 31%, compared to 22% in the same period last year
- Net profit: $1.59 billion, up 148% year over year
- Adjusted EPS: $1.13, up 117% y/y, beating Refinitiv expectations of $0.91
Revenue split by business group
- Computing and Graphics: $2.8 billion, up 33% year over year
- Enterprise, embedded and semi-customization segment (including data center processors, game console chips, etc.): US$2.53 billion, an increase of 88% year-on-year
- Xilinx division: $560 million
Looking at the performance of various departments, Q1 computing and graphics revenue increased by 33% to $2.8 billion, mainly driven by CPU and GPU sales, and the average selling price of AMD Ryzen processors also increased.
Enterprise, embedded and semi-custom segment sales surged nearly 88% year over year to $2.53 billion, driven by sales of higher-end servers and semi-custom processors, such as the PlayStation 5 console wafer.
Su Zifeng said,Consumer demand for Playstation 5, Xbox One and Steam online game platforms has helped the semi-customization business achieve double-digit growth. With the strong sales of recent generations of game consoles, the company is optimistic that the semi-customization business will achieve good results this year.
After AMD announced the acquisition of Xilinx for US$35 billion last year, the acquisition process was officially completed in February this year, and Xilinx also contributed US$560 million in revenue to Q1 performance.
Excluding Xilinx, AMD’s Q1 sales were $5.33 billion, an annual increase of 55%, with a gross profit margin of 51% and a profit margin of 30%.
In addition to performance, AMD also announced a $1.9 billion repurchase of treasury shares in Q1.