Real Money’s Eric Jhonsa covers AMD’s fourth-quarter earnings report and conference call with management.
With demand for its CPUs and GPUs still running very strong, AMD bulls are looking for the company to issue strong full-year guidance in its fourth-quarter earnings report.
Currently, the consensus among analysts polled by FactSet is for AMD to report fourth-quarter revenue of $4.52 billion (up 39% annually), GAAP EPS of $0.70 and non-GAAP EPS of $0.76.
AMD typically provides quarterly sales guidance and full-year revenue growth guidance in its report. The FactSet consensus is for AMD to post Q1 sales of $4.35 billion (up 26%) and to grow revenue 20% in 2022 to $19.29 billion.
Eric Jhonsa, Real Money’s tech columnist, will be live-blogging AMD’s earnings report, which is typically published at 4:15 P.M. Eastern Time, along with an earnings call scheduled for 5:00 P.M. Eastern Time. Please refresh your browser for updates.
4:47 PM ET: AMD’s numbers are giving a boost to GPU archrival Nvidia (up 4.2% AH) and foundry partner TSMC (up 1.2%).
On the other hand, Intel’s stock is down 0.4%, as markets take AMD’s guidance as a sign that more CPU share gains are on tap.
4:41 PM ET: Non-GAAP op. margin came in at 27% (up 7 points Y/Y), while free cash flow totaled $736M (+53%).
Thanks to the FCF, AMD ended 2021 with $3.61B in cash (roughly flat Q/Q in spite of the buybacks). Debt remained at $313M.
4:36 PM ET: Also helping EPS a bit: Non-GAAP operating expenses totaled $1.1B, up 40% Y/Y but a little below guidance of ~$1.15B. Opex is guided to rise to ~$1.2B in Q1.
4:34 PM ET: Giving Q4 EPS a boost: AMD spent $756M on buybacks. That follows $750M worth of buybacks in Q3 and brought the full-year total to $1.8B.
4:31 PM ET: The slides for AMD’s operating segments. The company notes PC CPU ASP rose Q/Q and Y/Y, while GPU ASP fell Q/Q but rose Y/Y. Also mentioned: There are now 100+ 3rd-gen Epyc (Milan) servers available from OEMs.
4:27 PM ET: AMD’s full guidance, via its slide deck. The company plans to keep investing aggressively this year: Non-GAAP operating expenses are expected to be at 24% of revenue (even with 2021), in spite of guidance for 31% revenue growth.
4:24 PM ET: AMD’s stock is now up 8.8% AH. Xilinx, which AMD is set to buy in an all-stock deal, is up a similar amount.
4:22 PM ET: Here’s the earnings release.
4:22 PM ET: AMD’s Computing & Graphics segment (it covers GPUs and PC CPUs) saw revenue grow 8% Q/Q and 32% Y/Y to $2.6B, topping a $2.42B consensus.
The Enterprise, Embedded & Semi-Custom segment (covers server CPUs and game console SoCs) saw revenue grow 17% Q/Q and 75% Y/Y to $2.2B, beating a $2.1B consensus.
4:19 PM ET: AMD’s Q4 non-GAAP gross margin was 50% — up from 48% in Q3, 45% a year ago and slightly above guidance of 49.5%.
Q1 non-GAAP GM guidance is at 50.5%. Full-year guidance is at 51%.
4:18 PM ET: Shares are up 4.9% after-hours to $122.50.
4:17 PM ET: AMD guides for Q1 revenue of $5B, +/- $100M. That’s above a $4.35B consensus.
The company guides for full-year revenue of $21.5B (+31%), above a $19.29B consensus.
4:15 PM ET: Results are out. Q4 revenue of $4.83B beats a $4.52B consensus. GAAP EPS of $0.80 beats a $0.70 consensus. Non-GAAP EPS of $0.92 beats a $0.76 consensus.
4:08 PM ET: Ahead of AMD’s report, Alphabet is up 4.4% AH following a strong Q4 beat.
4:01 PM ET: AMD closed up 2.2%. As a reminder, the company typically releases earnings at 4:15 ET.
3:58 PM ET: AMD’s stock is up 2.3% today heading into its report. Shares are down 18% YTD thanks to broader tech-stock weakness, but remain up 33% over the last 12 months.
3:55 PM ET: AMD’s Q1 revenue consensus is at $4.35B, while its full-year revenue consensus is at $19.29B (+20%). Full-year guidance is bound to be closely-watched.
3:54 PM ET: The FactSet consensus is for AMD to post Q4 revenue of $4.52B (slightly above a guidance midpoint of $4.5B) and non-GAAP EPS of $0.76. Informal expectations are probably higher, given how strong demand has been for AMD’s server CPUs, GPUs and game console SoCs.
3:52 PM ET: Hi, this is Eric Jhonsa. I’ll be live-blogging AMD’s earnings report and call.
