The shares of Advanced Micro Devices Inc. rose. in Tuesday’s extended session after chip maker posted $ 3 billion in quarterly revenue for the first time as its yields and both outperformed on Wall Street estimates.
AMD AMD,
shares rose 2.5% after hours, following a 0.6% rise in the regular session to close at $ 94.71.
AMD reported fourth-quarter net income of $ 1.78 billion, or $ 1.45 a share, compared to $ 170 million, or 15 cents a share, in the year-over-year period. After adjusting for stock-based compensation and other factors, the chip company reported earnings of 52 cents a share, compared to 32 cents a share in the previous year. Revenue rose to $ 3.24 billion from $ 2.13 billion in the fourth year ago.
Analysts conducted by FactSet had projected adjusted earnings of 47 cents a share on revenue of $ 3.03 billion.
AMD reported fourth-quarter sales of $ 1.96 billion for computing and graphics chips, up 18% from $ 1.66 billion last year, compared to analysts ’expectations of $ 1.8 billion. Sales from rooted and semi-rooted enterprise chips – the unit that generates revenue from data center and gaming-console – rose $ 1.28 billion, up 176% from $ 465 million a year ago, by to analysts ’average forecast of $ 1.24 billion.
“Our 2021 financial outlook highlights the strength of our product portfolio and strong demand for high-performance computing across the PC, gaming and data center markets,” AMD President and CEO Lisa Su said in a statement. “We are excited about the opportunities ahead and very confident in our long-term strategy as we continue to implement our leadership outcome maps.”
The company expects first-quarter revenue to be between $ 3.1 billion and $ 3.3 billion, with 2021 revenue rising about 37%, or to about $ 13.37 billion.
Analysts expect first-quarter revenue of $ 2.72 billion, and 2021 revenue of $ 12.26 billion.
Over the past 12 months, AMD shares have gained 88%. In contrast, the PHLX Semiconductor Index SOX,
rose 58% over that period, the S&P 500 SPX index,
gained 17%, and the Nasdaq Composite Index COMP index,
rose 46%.