AMD’s fourth-quarter revenue of $2.1 billion net profit, up 347% YoY

AMD today reported fourth-quarter and full-year results for fiscal 2019. AMD reported fourth-quarter revenue of $2.13 billion, up 50 percent from $1.42 billion a year earlier and 18 percent from $1.80 billion in the previous quarter, while net profit was $170 million, up 347 percent from $38 million a year earlier and $120 million in the previous quarter. AMD’s fourth-quarter results beat Wall Street analysts’ expectations, but its first-quarter revenue outlook for fiscal 2020 fell short of expectations, sending its shares down more than 3 percent after the session.

AMD's fourth-quarter revenue of $2.1 billion net profit, up 347% YoY

Summary of Fourth Quarter Results:

AMD’s net income for the quarter ended December 31 was $170 million, or $0.15 per share, better than a year earlier. AMD’s net income was $38 million, or $0.04 per share, in the fourth quarter of fiscal 2018. Do not include certain one-time items (not in accordance with U.S. GAAP), AMD’s fourth-quarter adjusted net income was $383 million, compared with $87 million a year earlier, and adjusted earnings per share of $0.32, compared with $0.08 a year earlier, slightly beating analysts’ expectations. 31 analysts had expected AMD’s fourth-quarter earnings per share to be $0.31, according to Yahoo Financial.

AMD’s fourth-quarter revenue was $2.13 billion, up 50 percent from $1.42 billion a year earlier and 18 percent from $1.80 billion in the previous quarter, which also beat analysts’ expectations. On average, 31 analysts expect AMD’s fourth-quarter revenue to be $2.11 billion, according to Yahoo Financial.

By business unit, AMD’s fourth-quarter revenue from its computing and graphics division was $1.662 billion, up from $986 million a year earlier and $1.276 billion in the previous quarter, while operating profit was $360 million, compared with $115 million a year earlier and $179 million in the previous quarter. AMD’s fourth-quarter Revenue from the embedded and semi-customized business was $465 million, up from $433 million a year earlier, but down from $525 million in the previous quarter, while operating profit was $45 million, compared with a loss of $6 million a year earlier and $61 million in the previous quarter. AMD’s operating loss from all other businesses was $57 million in the fourth quarter, compared with an operating loss of $81 million a year earlier and an operating loss of $54 million in the previous quarter.

AMD’s fourth-quarter operating profit was $348 million, compared with $28 million a year earlier, compared with $186 million in the previous quarter, and AMD’s adjusted operating profit for the fourth quarter was $405 million, compared with a year earlier. $109 million, compared with operating profit of $240 million in the previous quarter.

AMD’s fourth-quarter operating expenses were $601 million, up from $509 million a year earlier and $591 million in the previous quarter. Excluding some one-time items (excluding U.S. GAAP), AMD’s adjusted operating expenses for the fourth quarter were $545 million, up from $474 million a year earlier and $539 million in the previous quarter.

AMD’s gross margin in the fourth quarter was 45%, up 7 percentage points from 38% a year earlier and 2 percentage points from 43% in the previous quarter. Excluding certain one-time items (excluding U.S. GAAP), AMD’s adjusted gross margin for the fourth quarter was 45%, up 4 percentage points from 41% a year earlier and 2 percentage points from 43% in the previous quarter.

AMD's fourth-quarter revenue of $2.1 billion net profit, up 347% YoY

Summary of full-year results:

AMD’s full-year revenue was $6.73 billion, up 4% from $6.48 billion in fiscal 2018 Operating profit was $631 million, compared to $451 million in fiscal 2018, net income was $341 million, compared to $337 million in FY18, and earnings per share was $0.30, compared to $0.32 per share for fY18 and $43 million in 2018 %, up 5 percent from 38 percent in fiscal 2018, and operating expenses were $230 million, compared to $200 million in fiscal 2018.

Do not include certain one-time items (not in accordance with U.S. GAAP), AMD’s full-year operating profit was $840 million, compared to $633 million in fiscal 2018, while net income was $756 million, compared to $514 million in fiscal 2018, and earnings per share was $0.64, compared to $0.46 per share in fiscal 2018, compared to $43 million in fiscal 2018. %, up 4 percent from 39 percent in fiscal 2018, and operating expenses were $209 million, compared to $186 million in fiscal 2018.

Performance Outlook:

AMD forecast revenue of about $1.8 billion in the first quarter of fiscal 2020, up and down $50 million, up about 42 percent year-on-year and down about 15 percent from a year earlier, falling short of analysts’ expectations. 30 analysts now on average expect AMD’s first-quarter revenue of $1.86 billion, according to Yahoo Financial.

Share price changes:

AMD shares rose $1.27, or 2.58 percent, to $50.53 in regular trading on the Nasdaq. AMD shares fell $1.60, or 3.17 percent, to $48.93 in after-hours trading at 4:31 p.m. EST on Tuesday (5:31 a.m. EST on Wednesday). For the past 52 weeks, AMD has traded at a high of $52.81 and a low of $19.05.