Advanced Micro Devices Inc. Powerful data center and game sales to keep sales strong through 2021 after the chip maker topped $ 3 billion in quarterly revenue for the first time late Tuesday, and its results and forecasts beat Wall Street estimates.
It posted a fourth-quarter net profit of $ 1.78 billion, or $ 1.45 per share, compared to $ 170 million, or 15 cents a share, in the same period last year.
After adjusting to issue a $ 1.3 billion tax valuation allowance due to strong results and other factors, the chip company reported a dividend of 52 cents a share, compared to 32 cents a share in the same period last year. Revenue rose to $ 3.24 billion from $ 2.13 billion in the same quarter last year.
Analysts polled by FactSet expected adjusted earnings of 47 cents a share on revenue of $ 3.03 billion.
AMD reported fourth-quarter sales of $ 1.96 billion in computing and graphics chips, up 18% from $ 1.66 billion last year, compared to analyst forecasts of $ 1.8 billion. Sales of integrated and semi-custom enterprise chips – the unit that includes data center and game console revenue – were $ 1.28 billion, up 176% from $ 465 million a year ago, compared to the average analyst forecast of $ 1.24 billion.
AMD President and CEO Lisa Su said at the conference call that gaming products got a big boost from the latest quarterly release from Microsoft Corp. MSFT,
New line of Xbox and SNE consoles for Sony Corp.
“We have a semi-custom [system on a chip] “Sales are increasing faster than the previous console cycle, and we expect sales to be better than the usual seasonality in the first half of this year, based on the current strong demand,” Sue said on the call.
On the server side, Su said business and cloud sales remained strong.
Microsoft, Tencent 700,
Others continue to expand their use of Epyc processors to power larger portions of their critical internal infrastructure, as the number of AMD-powered cloud instances is expanding.
The company expects first-quarter revenues to range between $ 3.1 billion and $ 3.3 billion, and 2021 revenues to increase by about 37%, or about $ 13.37 billion.
Analysts forecast first-quarter revenue of $ 2.72 billion, and 2021 revenue of $ 12.26 billion.
Sue also said AMD has “passed several important regulatory milestones so far” in connection with the acquisition of Xilinx Inc. XLNX,
And that the deal is still on its way to close by the end of 2021.
AMD shares, which were up 3% after hours, were down less than 1% in extended trade, after rising 0.6% in the regular session to close at $ 94.71.
Over the past twelve months, AMD shares have gained 88%. In comparison, the PHLX semiconductor SOX index,
It is up 58% during that time, and the S&P 500 SPX,
Gained 17%, and the high-tech Nasdaq Composite Index,
It rose 46%.