AMD Q3 2017 earnings were released after closing bell tonight, and the company posted adjusted earnings of 10 cents per share on $1.64 billion in revenue. Analysts had been expecting earnings of 8 cents per share on $1.5 billion in revenue. In last year’s third quarter, the chip maker reported earnings of 3 cents per share on an adjusted basis on $1.31 billion in revenue.
AMD Q3 2017 earnings
On a GAAP basis, AMD Q3 2017 earnings amounted to 7 cents per share, up from the 50 cents per share in losses the chip maker posted in last year’s third quarter. The GAAP gross margin was 35%, an improvement of 30 percentage points due to a $340 million charge from the wafer supply agreement with Globalfoundries a year ago. The non-GAAP gross margin was also 35%, an improvement of 4 percentage points due to a benefit from IP-related revenue and a better mix of Computing and Graphics products.
AMD said its Computing and Graphics division drove the 26% increase in sales. The 34% sequential increase in revenue was driven by seasonality in the Enterprise, Embedded and Semi-Custom segment and higher Computing and Graphics revenue.
Morningstar Investment Conference: Using Annuities In A Portfolio For Added Stability
Computing and Graphics revenue grew 74% year over year to $819 million as strength in its Radeon graphics and Ryzen desktop processors drove the strength. The average selling price of its GPUs also grew “significantly,” the company said. Enterprise, Embedded and Semi-Custom sales were roughly flat year over year at $824 million. The Other segment posted an operating loss of $28 million, which was an improvement from the $363 million in operating losses the segment reported a year ago.
Advanced Micro Devices provides guidance
For the fourth quarter, AMD expects revenue to decline by about 15% sequentially, plus or minus 3%. At the midpoint, the chip maker’s revenue would rise by 26% year over year. The company expects its full-year sales to grow by more than 20%, while it was previously expecting growth in only the mid- to high-teens percentages.
Following the AMD Q3 2017 earnings release, the company’s stock tanked in after-hours trade, falling by as much as 6.88% to $13.27.