AMD beats on sales and profit but warns of a 10% revenue decline in Q1

AMD reported fourth-quarter earnings connected Tuesday, beating Wall Street expectations for income and profit, but guided analysts to a 10% diminution successful year-over-year income successful the existent quarter.

The banal roseate implicit 3% successful extended trading.

Here's however the institution did versus Refinitiv statement estimates for the 4th ending successful December:

• EPS: $0.69, adjusted, versus $0.67 per stock expected
• Revenue: $5.6 billion, versus $5.5 cardinal expected

AMD said it expected $5.3 cardinal successful income successful the existent quarter, somewhat little than a Refinitiv estimation of $5.47 billion. AMD's estimation suggests a 10% diminution successful income successful the existent quarter. It besides said it expected its adjusted gross borderline to beryllium astir 50%, a cardinal metric for chipmakers similar AMD.

AMD reported net arsenic galore of its rival chipmakers person stumbled successful caller weeks, citing little user request for finished electronics and gluts of parts needed to marque PCs and servers. Intel, AMD's superior competitor, reported a disastrous quarter past week that included a anemic 2023 outlook.

While AMD said it saw dilatory income for its PC chips and graphics processors, it said its information halfway conception roseate 42% year-over-year, suggesting it took marketplace stock from Intel.

AMD attributed its bushed to beardown maturation successful its embedded and information halfway businesses, and said that its lawsuit revenue, oregon chips for PCs and laptops, and its gaming conception were down.

AMD's information halfway conception roseate 42% year-over-year to $1.7 billion. Its embedded conception grew 1,868%, AMD said, due to the fact that of income from its acquisition of Xilinx.

But its lawsuit group, which includes income from PC processors, was down 51% year-over-year due to the fact that of a anemic PC market, AMD said. It added that its customers person excessively overmuch inventory of its chips, a taxable different semiconductor companies person mentioned successful caller weeks.

AMD's gaming business, which is comprised of graphics cards and chips for gaming consoles, was down 7% year-over-year. The alteration came from graphics cards and was offset by "semi-custom" revenue, which however the institution reports income from chips for gaming systems similar the PlayStation 5.