AMD’s quarterly revenue tops £2.3 billion for the first time in history

Written by: Wajeeh Khan
January 26, 2021
  • AMD’s quarterly revenue tops £2.3 billion for the first time in history.
  • The chipmaker reports £1.30 billion of net income in the fourth quarter.
  • AMD forecasts a 37% year over year growth in its full-year revenue.

Advanced Micro Devices Inc. (NASDAQ: AMD) said on Tuesday that its financial performance was better than expected in the fiscal fourth quarter. The company also gave future guidance that topped analysts’ estimates.

AMD shares initially jumped roughly 4% in extended trading on Tuesday but then lost nearly 5% later on. If you want to invest in the stock market, you’ll need a reliable stockbroker – here’s a list of the top few to make selection easier for you.

AMD Q4 financial results versus analysts estimates

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AMD said that its net income in the fourth quarter came in at £1.30 billion that translates to £1.06 per share. In the comparable quarter of last year, its net income was capped at a significantly weaker £123.72 million only, or 10.92 pence per share.

On an adjusted basis, the chipmaker earned 37.84 pence per share in the recent quarter versus the year-ago figure of 23.29 pence per share. AMD generated £2.36 billion of revenue in Q4 as compared to a much lower £1.55 billion in the same quarter last year.

According to FactSet, experts had forecast the company to post £2.21 billion of revenue in the fourth quarter. Their estimate for per-share earnings stood at 34.20 pence. The Santa Clara-based company had recorded a 4% year over year growth in its revenue in the prior quarter (Q3).

Other prominent figures in AMD’s earnings report on Tuesday include £1.43 billion of sales (18% higher than last year) from computing and graphics chips, and £930 million of sales (176% higher than last year) from its enterprise embedded and semi-custom chips. Sales from both segments topped analysts’ forecasts.

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AMD’s guidance for the fiscal first quarter

In the fiscal first quarter, the American multinational now expects its revenue to fall in the range of £2.26 billion to £2.40 billion. Advanced Micro Devices forecasts a 37% annualised growth in its full-year revenue.

Analysts, on the other hand, are calling for £1.98 billion of revenue in Q1 and £8.92 billion in fiscal 2021 as a whole. In an announcement in October, AMD said that it was in advanced talks with Xilinx for a potential buyout.

Advanced Micro Devices performed massively upbeat in the stock market last year with an annual gain of close to 90%. At the time of writing, the semiconductor company is valued at £82.90 billion and has a price to earnings ratio of 130.10.