Four weeks after Advanced Micro Devices issued a sales warning, all eyes are on the quarterly sales forecast that the chip supplier is expected to publish in its latest earnings report.
Analysts polled by FactSet agree that AMD reported third-quarter revenue of $5.65 billion (up 31% annually, helped by AMD’s acquisition of Xilinx) and non-GAAP EPS of 0 $.69 (down 6%). The top-line figure is close to AMD’s preliminary guidance (released Oct. 6) for Q3 revenue of around $5.6 billion.
For the fourth quarter, AMD revenue consensus is $5.95 billion, up 23%, and EPS consensus is $0.80. The company typically shares quarterly and full-year revenue and gross margin guidance in its earnings reports.
Real Money tech columnist Eric Jhonsa will be live blogging AMD’s report, which is expected shortly after the market close on Tuesday, along with a earnings call by CEO Lisa Su and CFO Devinder Kumar, scheduled for March 17 :00 p.m. Eastern Time is scheduled.
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4:48 p.m. ET: Notable: AMD’s non-GAAP operating expenses were $1.52 billion in Q3, up 47% year over year (boosted by both the Xilinx deal and organic investments), but below original ~$1.64 billion forecast.
AMD forecasts operating expenses of ~$1.55 billion for Q4
4:41 p.m. ET: Q3 films for the gaming and embedded segments. As Xilinx reported revenue of $936 million for the September quarter of 2021, third-quarter embedded revenue of $1.3 billion indicates Xilinx Y/Y revenue grew strongly.
It’s worth noting that embedded also includes AMD’s sales of embedded CPUs. But on the other hand, it does not include Xilinx data center FPGA sales, which are counted in the data center segment.
4:36 p.m. ET: AMD’s Q3 slides for the Data Center and Client segments. The customer posted a small operation. Loss as sales plummeted while Data Center op. Earnings grow 64% on revenue growth of 45%.
Also, AMD says it has made initial shipments of its next-gen Epyc CPUs (Genoa), scheduled for release on 11/10.
4:33 p.m. ET: AMD remains moderately higher: shares are up 1.3% to $60.44.
4:31 p.m. ET: Also consistent with the prior announcement, AMD’s third-quarter non-GAAP gross margin (harmed by $160 million in fees) was 50%, down from 54% in the second quarter and up from 48.5 % last year.
The company expects non-GAAP GM of 51% in the fourth quarter. GM guidance for the full year was cut 2 points from July to 52%.
4:28 p.m. ET: In line with the Q3 advance notice, data center revenue totaled $1.6 billion (+45% Y/Y, buoyed by strong cloud demand and stock gains).
Client (PC CPU) revenue totaled $1 billion (down 40% due to weak PC demand and large inventory reductions). Gaming revenue totaled $1.6 billion (+14%, console SoC sales up, gaming GPU sales down). Embedded (mainly Xilinx) sales totaled $1.3 billion.
4:24 p.m. ET: Here’s the Q3 report for those interested.
4:22 p.m. ET: Also, maybe helpful: AMD expects its data center (server CPU) and embedded (Xilinx) segments to grow both Q/Q and Y/Y in the fourth quarter.
4:20 p.m. ET: AMD stock is now up 2.8% AH. Although the Q4 sales guide was light, informal expectations were well below consensus.
4:18 p.m. ET: Full year revenue guidance, which includes third quarter results and fourth quarter guidance, was lowered to $23.5 billion (+/- $300 million) from $26.3 billion in July.
4:17 p.m. ET: Shares are down 0.8% AH for now.
4:16 p.m. ET: results are there. Third quarter revenue of $5.57 billion is close to preliminary guidance of ~$5.6 billion. Non-GAAP EPS of $0.67 is slightly below a consensus of $0.69.
AMD expects fourth-quarter revenue of $5.5 billion plus or minus $300 million. That’s below a consensus of $5.95 billion.
4:10 p.m. ET: I’m still waiting for the release of the Q3 report.
4:00 p.m. ET: AMD closed up 0.7% at $59.66. The Q3 report should be out soon.
3:57 p.m. ET: Expectations seem muted: AMD’s stock is down 58% since the start of the Q3 report. With PC sales notoriously weak, AMD’s guide/comment on server CPU demand is likely to get a lot of attention.
3:52 p.m. ET: FactSet consensus calls for AMD to report third-quarter revenue of $5.65 billion and non-GAAP EPS of $0.69. But since AMD issued a warning back on Oct. 6, the company’s Q4 guidance is bound to have a bigger impact on how the stock moves post-earnings. The fourth quarter selling consensus currently stands at $5.95 billion.
3:50 p.m. ET: Hello, this is Eric Jhonsa. I’ll be live blogging and calling AMD’s Q3 report.