Shares of Advanced Micro Devices Inc. headed for record highs in overtime trading on Tuesday after the chip company reported second-quarter earnings that beat expectations and boosted forecasts for the full year despite the COVID-19 pandemic.
net income for the second quarter was $ 157 million, or 13 cents per share, compared to $ 35 million, or 3 cents per share, for the prior period. After adjusting compensation based on inventories and other factors, the chip company reported earnings of 1
Analysts polled by FactSet forecast a profit adjustment of 16 cents on revenue of $ 1.85 billion.
AMD has announced that it now expects revenue to grow by about 32% by 2019, equal to annual sales of about $ 8.88 billion, up from $ 8.08 billion to $ 8.75 billion. reports FactSet. On average, analysts expected revenue by 2020 of about $ 8.4 billion, according to FactSet.
“We achieved high results in the second quarter, led by sales of laptops and server processors, as Ryzen and Epyc’s revenues more than doubled compared to a year ago,” said Lisa Soo, President and CEO of AMD. “Despite some macroeconomic uncertainty, we are increasing our full-year revenue forecast as we move into the next phase of growth driven by the acceleration of our business in many markets.”
Patrick Moorhead, chief analyst at Moor Insights & Strategy, who believed AMD remained conservative at the beginning of the year, believes sales have even more room to launch.
“I think this new forecast is conservative because I think Epyc’s revenue will grow even more,” Moorhead said.
Shares rose more than 10% after an hour, after falling by 2% in the regular session closed at $ 67.61, ahead of AMD’s intraday record – $ 71.63, set at the end of last week. After the leading SP&P 500 SPX index,
in annual percentage growth in both 2018 and 2019, AMD shares have risen more than 47% so far in 2020, as S&P fell 0.4%.
AMD’s results follow last week’s surprise that Intel Corp. INTC,
delayed the release of its 7-nanometer chips at least until the end of 2022 due to production problems. AMD has already developed 7-nm chips for servers and personal computers and has found a larger market share and increased sales and profits with these products.
Read:AMD weathers the coronavirus, and competes the most
AMD said it sold $ 1.37 billion in computing and graphics chips, up 45% from last year at $ 940 million, according to analysts’ expectations of 45% to $ 1.36 billion. Sales of embedded and semi-embedded enterprise chips, a unit that includes revenue from data centers and game consoles, were $ 565 million, down 4% from $ 591 million a year ago, but well ahead of analysts’ average forecasts of a decline of 18 % to $ 485.5 million.
In the third quarter, AMD forecast sales of $ 2.45 billion to $ 2.65 billion, while analysts forecast average revenue of $ 2.31 billion. The company and analysts expect AMD’s embedded and semi-acceptable business to accelerate in the second half of the year when Sony Corp.’s new video game consoles. SNE,
and Microsoft Corp. MSFT,
which contain AMD chips.