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AMD earnings Q4 2021
Lisa Su, president and chief govt officer of Superior Micro Units (AMD), holds a third era Ryzen desktop processor whereas talking throughout a keynote session on the 2019 Client Electronics Present (CES) in Las Vegas, Jan. 9, 2019.
David Paul Morris | Bloomberg | Getty Pictures
AMD reported fourth-quarter earnings after the bell on Tuesday, beating analyst estimates for earnings and gross sales, and delivered a really sturdy gross sales forecast for 2022.
AMD inventory rose over 11% in at one level throughout prolonged buying and selling.
Right here’s how the chipmaker did versus per Refinitiv consensus estimates within the quarter ending Dec. 25:
- EPS: $0.92, adjusted, versus $0.76 estimated, up 26% year-over-year
- Income: $4.83 billion, versus $4.53 billion estimated, up 49% year-over-year
AMD mentioned it anticipated $21.5 billion in gross sales in 2022, forward of analyst expectations of $19.26 billion. That will be a 31% improve over 2021’s gross sales. AMD mentioned it anticipated $5 billion in gross sales within the first quarter, pushed by server and PC processor gross sales.
In 2021, AMD’s gross sales elevated 68%, and the corporate’s gross margin elevated to 48%, up over 3 share factors from final 12 months.
AMD has been driving a surge in PC and electronics gross sales over the previous two years and has lately launched new chips with vital efficiency positive aspects which can be permitting the processor maker to problem Intel, which is the most important provider of PC chips.
These gross sales are reported in AMD’s computing and graphics section, which reported 32% progress to $2.6 billion in income. AMD mentioned that the gross sales had been pushed by Ryzen processors and Radeon graphics processor gross sales, and famous the typical promoting worth for each product strains was rising on an annual foundation.
AMD additionally sells chips for cloud servers and sport consoles, that are reported within the Embedded, Enterprise, and Semi-custom section. That section shot up 75% to $2.2 billion, powered by server chip and sport console gross sales, AMD mentioned.
“We count on [semi-custom] income to develop this 12 months pushed by continued sturdy demand for the most recent Microsoft and Sony consoles,” AMD Lisa Su mentioned on a name with analysts, saying the present console improve cycle is outpacing “all prior generations.”
AMD beforehand introduced its plans to purchase Xilinx in a deal value $35 billion that may give the corporate extra firepower to compete with Intel within the information middle chip market. The corporate mentioned on Tuesday that it had acquired approval from Chinese language regulatory our bodies for the transaction, however the acquisition has not but closed.
“The one remaining regulatory evaluation required is FTC approval of our HSR re-filing and we count on to shut the transaction within the first quarter of 2022,” Su mentioned.
AMD mentioned that it has the manufacturing capability it must develop in 2022, an acknowledgement of the present worldwide chip scarcity roiling rivals. AMD mentioned it spent $1 billion in 2021 to safe long-term manufacturing capability. Su mentioned final September that she expects the chip scarcity to grow to be much less extreme this 12 months.
AMD mentioned it repurchased $1.8 billion of its shares in 2021.
AMD inventory was down 22% year-to-date when markets closed on Tuesday.
Correction: This story has been up to date with the right analyst expectations for 2022 steerage.
