Real Money’s Eric Jhonsa live-blogs AMD’s earnings report and conference call with management.
Four weeks after Advanced Micro Devices issued a sales warning, all eyes are on the quarterly sales guidance the chip supplier is expected to share in its latest earnings report.
Among analysts polled by FactSet, the consensus is for AMD to report third-quarter revenue of $5.65 billion (up 31% annually, with an assist from AMD’s acquisition of Xilinx) and non-GAAP EPS of $0.69 (down 6%). The top-line figure is close to AMD’s preliminary forecast (issued on Oct. 6) for Q3 revenue of roughly $5.6 billion.
For the fourth quarter, AMD’s revenue consensus stands at $5.95 billion (up 23%), and its EPS consensus stands at $0.80. The company typically shares quarterly and full-year sales and gross-margin guidance in its earnings reports.
Eric Jhonsa, Real Money’s tech columnist, will be live-blogging AMD’s report, which is expected shortly after the close on Tuesday, along with an earnings call expected to feature CEO Lisa Su and CFO Devinder Kumar that’s scheduled for 5 P.M. Eastern Time.
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4:48 PM ET: Of note: AMD’s Q3 non-GAAP operating expenses came in at $1.52B, up 47% Y/Y (boosted by both the Xilinx deal and organic investments) but below its original guidance of ~$1.64B.
For Q4, AMD is guiding for opex of ~$1.55B
4:41 PM ET: Q3 slides for the Gaming and Embedded segments. With Xilinx having reported revenue of $936M in its September 2021 quarter, Q3 Embedded revenue of $1.3B suggests Xilinx’s sales grew strongly Y/Y.
It’s worth noting Embedded also includes AMD’s sales of embedded CPUs. But on the flip side, it doesn’t include Xilinx’s data center FPGA sales, which are counted by the Data Center segment.
4:36 PM ET: AMD’s Q3 slides for its Data Center and Client segments. Client posted a small op. loss as sales tumbled, while Data Center saw op. income grow 64% amid 45% revenue growth.
Also: AMD says it made initial shipments of its next-gen Epyc CPUs (Genoa), which will be formally announced on 11/10, and that shipments of Pensando DPUs and Xilinx data center FPGAs “ramped significantly.”
4:33 PM ET: AMD remains moderately higher: Shares are up 1.3% to $60.44.
4:31 PM ET: Also in-line with the preannouncement: AMD’s Q3 non-GAAP gross margin (hurt by $160M worth of charges) was 50%, down from 54% in Q2 and up from 48.5% a year ago.
The company is guiding for a Q4 non-GAAP GM of 51%. The full-year GM guidance has been lowered by 2 points from July levels to 52%.
4:28 PM ET: In line with the Q3 preannouncement, Data Center revenue totaled $1.6B (+45% Y/Y, boosted by strong cloud demand and share gains).
Client (PC CPU) revenue totaled $1B (down 40% amid weak PC demand and large inventory reductions). Gaming revenue totaled $1.6B (+14%, console SoC sales up, gaming GPU sales down). And Embedded revenue (mostly Xilinx) totaled $1.3B.
4:24 PM ET: Here’s the Q3 report, for those interested.
4:22 PM ET: Also perhaps helping: AMD says it expects its Data Center (server CPU) and embedded (Xilinx) segments to grow both Q/Q and Y/Y in Q4.
4:20 PM ET: AMD’s stock is now up 2.8% AH. Though the Q4 sales guide was light, informal expectations were clearly below consensus.
4:18 PM ET: The full-year revenue guide, which takes into account Q3 results and Q4 guidance, has been cut to $23.5B (+/- $300M) from July levels of $26.3B.
4:17 PM ET: Shares are down 0.8% AH for now.
4:16 PM ET: Results are out. Q3 revenue of $5.57B is close to a preliminary forecast of ~$5.6B. Non-GAAP EPS of $0.67 is slightly below a $0.69 consensus.
AMD guides for Q4 revenue of $5.5B, plus or minus $300M. That’s below a $5.95B consensus.
4:10 PM ET: Still waiting for the Q3 report to come out.
4:00 PM ET: AMD closed down 0.7% to $59.66. The Q3 report should be out soon.
3:57 PM ET: Expectations appear subdued: AMD’s stock is down 58% YTD going into its Q3 report. With PC sales known to be weak, AMD’s guidance/commentary for server CPU demand will likely get a lot of attention.
3:52 PM ET: The FactSet consensus is for AMD to report Q3 revenue of $5.65B and non-GAAP EPS of $0.69. But with AMD having already warned on Oct. 6, the company’s Q4 guidance is bound to have a bigger impact on how its stock moves post-earnings. The Q4 sales consensus is currently at $5.95B.
3:50 PM ET: Hi, this is Eric Jhonsa. I’ll be live-blogging AMD’s Q3 report and call.
