AMD Chair and CEO Lisa Su speaks at the AMD Keynote address during the Consumer Electronics Show (CES) on January 4, 2023 in Las Vegas, Nevada.
Robyn Beck | AFP | Getty Images
AMD reported fourth-quarter earnings on Tuesday, beating Wall Street expectations for sales and profit, but guided analysts to a 10% decline in year-over-year sales in the current quarter. The stock rose over 2% in extended trading. Here’s how the company did versus Refinitiv consensus estimates for the quarter ending in December:
- EPS: $0.69, adjusted, versus $0.67 per share expected
- Revenue: $5.6 billion, versus $5.5 billion expected
AMD said it expected $5.3 billion in sales in the current quarter, slightly lower than a Refinitiv estimate of $5.47 billion. AMD’s estimate suggests a 10% decline in sales in the current quarter. AMD’s sales rose 44% in 2022.
The company also said it expected its adjusted gross margin to be about 50%, a key metric for chipmakers.
AMD reported earnings as many of its rival chipmakers have stumbled in recent weeks, citing lower consumer demand for finished electronics and gluts of parts needed to make PCs and servers.
Intel, AMD’s primary competitor, reported a disastrous quarter last week that included a weak 2023 outlook including a 40% year-over-year decline in sales in the March quarter.
The chipmaker attributed its beat to strong growth in its embedded and data center businesses, and said that its client revenue, or chips for PCs and laptops, and its gaming segment were down.
AMD’s data center segment rose 42% year-over-year to $1.7 billion. Its embedded segment grew 1,868%, AMD said, because of sales from its purchase of Xilinx.
While AMD said it saw slow sales for its PC chips and graphics processors, it said its data center segment rose 42% year-over-year, suggesting it took market share from Intel.
But its client group, which includes sales from PC processors, was down 51% year-over-year because of a slumping PC market, AMD said. It added that its customers…
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