Post Earnings Coverage as AMD’s Revenue Soared 18%

Upcoming AWS Coverage on Qorvo Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 12, 2017 / Active Wall St. announces its post-earnings coverage on Advanced Micro Devices, Inc. (NASDAQ: AMD). The Company released its first quarter fiscal 2017 results on May 01, 2017. The chipmaker bettered market estimates for revenue and earnings. Register with us now for your free membership at:

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One of Advanced Micro Devices’ competitors within the Semiconductor – Broad Line space, Qorvo, Inc. (NASDAQ: QRVO), posted its Q4 FY17 financial results on Wednesday, May 03, 2017. AWS will be initiating a research report on Qorvo in the coming days.

Today, AWS is promoting its earnings coverage on AMD; touching on QRVO. Get our free coverage by signing up to:

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Earnings Reviewed

For the quarter ended April 01, 2017, AMD reported revenue of $984 million up 18% compared to revenue of $832 million in Q1 2016, driven by higher revenue in both its Computing and Graphics; and Enterprise, Embedded, and Semi-Custom business segments. The Company’s revenue numbers surpassed analysts’ consensus of $982.6 million.

On a GAAP basis, AMD’s gross margin was 34% for Q1 2017, up 2% y-o-y and sequentially due to a higher percentage of revenue from the Computing and Graphics segment, as well as a richer product mix within that segment. The Company’s GAAP operating loss was $29 million compared to operating losses of $68 million in the year ago same period and $3 million in the prior quarter. AMD’s adjusted operating loss was $6 million compared to an operating loss of $55 million in Q1 2016 and operating income of $26 million in Q4 2016.

For Q1 2017, AMD reported net loss of $73 million, or $0.08 per share, compared to net losses of $109 million, or 0.14 per share, in Q1 2016. The Company posted net loss of $38 million, or $0.04 per share, for the reported quarter compared to net losses of $96 million, or $0.12 per share, in the prior year’s same quarter. AMD’s net loss was lesser than Wall Street’s expectations for a loss of $0.05 per share.

Segment Summary

During Q1 2017, AMD’s Computing and Graphics segment generated revenue of $593 million, up 29% on a y-o-y basis driven primarily by higher desktop and graphics processor sales. The segment reported operating loss of $15 million compared to operating losses of $70 million in Q1 2016. The y-o-y improvement was driven primarily by higher revenue. Client average selling price (ASP) increased y-o-y driven by desktop processor ASP. The segment’s GPU ASP increased y-o-y primarily to higher desktop GPU ASP.

For Q1 2017, AMD’s Enterprise, Embedded, and Semi-Custom segment reported revenue of $391 million, up 5% on a y-o-y basis, primarily driven by higher semi-custom SoC sales. The segment’s operating income was $9 million for the reported quarter compared to an operating income of $16 million in Q1 2016 and an operating income of $47 million in Q4 2016. The y-o-y decline in operating income was primarily due to higher server related R&D investments, partially offset by an increase in the THATIC JV licensing gain. The sequential decrease was primarily due to seasonally lower sales of semi-custom SoCs.

All Other operating loss was $23 million compared with operating losses of $14 million in Q1 2016 and $29 million in Q4 2016. The y-o-y and sequential differences in operating loss were related to stock-based compensation charges.

Cash Flow Details

AMD’s cash, cash equivalents, and marketable securities were $943 million at the end of Q1 2017, down $321 million from the end of the prior quarter primarily due to the timing of sales and cash collections, debt interest payments, and increased inventory.

Current Outlook

For Q2 2017, AMD expects revenue to increase approximately 17% sequentially, plus or minus 3%. The midpoint of the forecast would result in the upcoming quarter revenue increasing approximately 12% on a y-o-y basis.

Stock Performance

On Thursday, May 11, 2017, the stock closed the trading session at $11.07, climbing 2.59% from its previous closing price of $10.79. A total volume of 72.85 million shares have exchanged hands, which was higher than the 3-month average volume of 67.93 million shares. Advanced Micro Devices’ stock price soared 58.14% in the past six months, and 203.29% in the previous twelve months. At Thursday’s closing price, the stock’s net capitalization stands at $10.72 billion.

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