AMD prints £121 million of net income in the fiscal second quarter

Advanced Micro Devices (NASDAQ: AMD) published its quarterly financial results on Tuesday that highlighted the company to have generated more than expected revenue in the second quarter. The company also raised its revenue outlook for the full year on Tuesday.

Shares of the company jumped more than 10% in after-hours trading on Tuesday. At £57.54 per share, AMD is currently about 50% up year to date in the stock market after recovering from a low of £29.86 per share in March. Learn more about how to invest in the stock market.

AMD’s Q2 financial results versus analysts’ estimates

According to Refinitiv, experts had forecast the company to print £1.43 billion in revenue in the second quarter. Their estimate for earnings per share (EPS) was capped at 12.34 pence per share. In its report on Tuesday, AMD topped the estimate for revenue posting a higher £1.49 billion. Its EPS, however, came in weaker than expected at 10.03 pence in Q2.

At £121 million, the Sunnyvale-based company said that its net income in the recent quarter came in significantly higher than £27 million in the comparable quarter of last year. AMD’s CEO announced ambitious targets earlier this year in March.

In its previous estimate in April, the American multinational semiconductor company had forecast a 25% growth in its revenue for the full year. On Tuesday, AMD said that it now expects an even broader 32% growth in revenue this year.

The company is now expecting £6.85 billion of revenue in fiscal 2020. Analysts, on the other hand, are also anticipating a 25% increase in the company’s full-year revenue. AMD launched the world’s most advanced 7nm×86 desktop processor last week.

Other prominent figures in AMD’s earnings report

Other prominent figures included in AMD’s earnings report on Tuesday include £435.76 million of sales that it generated from enterprise embedded and semi-custom chips that translates to a 4% decline on an annualised basis. The figure, however, was stronger than the experts’ forecast of an 18% decline in Q2.

On a year over year basis, the chip-maker saw a 26% growth in revenue in the second quarter. It further highlighted that it generated a revenue of £1.06 billion in Q2 from its computing and graphics business that represents a 45% growth as compared to the same quarter last year and was in line with the analysts’ expectations.

At the time of writing, AMD is valued at £61.07 billion and has a price to earnings ratio of 161.74.