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.
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“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.