AMD announced fourth-quarter profits after the bell on Tuesday, exceeding analyst earnings and sales projections and delivering a very high sales prediction for 2022. During prolonged trading, AMD stock increased by more than 11%. Here’s how the chipmaker fared in the quarter ended Dec. 25 compared to Refinitiv consensus estimates:
EPS: $0.92, adjusted, vs. $0.76 expected, representing a 26% year-over-year increase.
Revenue: $4.83 billion, up 49% over the previous year’s expectation of $4.53 billion.
AMD forecasted $21.5 billion in revenue in 2022, above expert, estimates $19.26 billion. That would be a 31% increase in sales in 2021. AMD expects $5 billion in revenue in the first quarter, owing to server and PC processors sales.AMD’s revenue climbed by 68 %in 2021, while the company’s gross margin increased by 3 percentage points to 48 percent. Over the last two years, AMD has benefited from a spike in PC and electronics sales. It has just introduced new processors with considerable performance improvements, allowing the processor maker to rival Intel, the largest provider of PC chips.
Computers and Graphics Sector
These sales were recorded in AMD’s computers and graphics sector, which saw a 32% increase in revenue to $2.6 billion. AMD stated that Ryzen CPUs and Radeon graphics processor sales were driving sales. The average selling price for both product lines was growing year over year. AMD also supplies processors for cloud servers and gaming consoles in the Embedded, Enterprise, and Semi-custom categories. According to AMD, sales of server chips and gaming consoles boosted this category by 75% to $2.2 billion.
AMD stated that it has the necessary manufacturing capacity to expand in 2022, acknowledging the present global chip scarcity plaguing competitors. According to the company, in 2021, AMD invested $1 billion to ensure long-term production capacity. Su stated in September that she believes the chip scarcity would ease this year.
In 2021, AMD reported it repurchased $1.8 billion in stock. When the markets closed on Tuesday, AMD stock was down 22% year to date.
