AMD ‘Soaring 6% after hours’ after beating expectations
Added: (Thu May 02 2019)
Pressbox (Press Release) -
Advanced Micro Devices recently published their first quarter financials, reporting much stronger than expected results. Shares of Advanced Micro Drivers have shown a sharp increase in after-hours trading on Tuesday. The well-known chipmaker issued adjusted earnings per share of 6 cents beating analysts’ estimates of 5 cents per share. This alongside their revenue report of $1.27 Billion USD which again was above the expected $1.26 Billion USD. However not all news was as good, the graphics and computer and graphics revenue of the company fell 26% year over year down to a still respectable $831 Million USD. A spokesperson for the company said the decline in revenue was due to lower graphics chip sales, but that was offset by an increase in client processor and datacenter GPU sales figures.
In a recent press release to investors the CEO of AMD Lisa Su said “We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year, and we look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth.” For their second financial quarter of the year AMD has posted expected revenue of between $1.48 Billion and $1.57 Billion. External analysts are expecting a second quarter revenue of around $1.52 Billion.
AMD shares have taken off this year, and have rallied over 48%, which has outperformed the Philadelphia Semiconductor Index, which in the same time frame has shown only 35%. Advanced Micro Drivers took the crown of the best performing stock in the S&P 500 for the financial year of 2018.
Ryan Holding – AMT Associates