Advanced Micro Devices Q2 F17 earnings were released after closing bell tonight. The chip maker posted non-GAAP earnings of 2 cents per share on $1.22 billion in sales. Wall Street had been looking for breakeven as adjusted on $1.16 billion in sales. In last year’s second quarter, the chip maker reported $1.03 billion in sales and adjusted losses of 5 cents per share.
Advanced Micro Devices Q2 F17 earnings
Advanced Micro Devices Q2 F17 earnings revealed GAAP losses of 2 cents per share, versus the 3 cents per share in GAAP losses that analysts had expected. In last year’s second quarter, AMD posted GAAP earnings of 8 cents per share. The chip maker said sales growth in its Computing and Graphics division drove the 19% year over year increase in revenue.
AMD’s GAAP and non-GAAP gross margins grew 2 percentage points to 33% as product mix improved and the Computing and Graphics segment delivered a greater percentage of the total sales. Management cited the first full quarter of availability for its Ryzen processors for the increase in revenue.
“Our second quarter results demonstrate strong growth driven by leadership products and focused execution,” AMD President and Chief Executive Dr. Lisa Su said in a statement. “Our Ryzen desktop processors, Vega GPUs, and EPYC datacenter products have received tremendous industry recognition.”
Adjusted EBITDA jumped to $84 million from $36 million in the year-ago quarter. However, free cash flow remained in the red at -$94 million, which was still an improvement from the -$106 million recorded in last year’s second quarter.
Computing and Graphics sales surged 51% year over year to $659 million as demand for AMD’s graphics and Ryzen desktop processors drove the growth. Enterprise, Embedded and Semi-Custom revenue fell 5% as a result of reduced sales of its semi-custom systems-on-a-chip.
AMD boosts outlook
For the third quarter, AMD forecasts a 23% sequential increase in sales, plus or minus 2 percent. At the midpoint, management’s outlook indicates about a 15% year-over-year increase in revenue. The chip maker projects full-year revenue to grow in the mid- to high-teens percentages, a slight bump up from their previous outlook of sales growth in the low double-digits.
After the Advanced Micro Devices Q2 F17 earnings were released, the chip maker’s stock soared, rising by as much as 6.31% to $15 in after-hours trading.