AMD Q2 Profit Tops Estimates; Revenue Up 26% - Quick Facts

(RTTNews) - Advanced Micro Devices, Inc. (AMD) reported second quarter non-GAAP earnings per share of $0.18 compared to $0.08, prior year. On average, 30 analysts polled by Thomson Reuters expected the company to report profit per share of $0.16, for the quarter. Analysts' estimates typically exclude special items.

Second quarter revenue was $1.93 billion, an increase of 26% from prior year primarily driven by higher Computing and Graphics segment revenue. Analysts expected revenue of $1.86 billion for the quarter. Computing and Graphics segment revenue was $1.37 billion, up 45 percent year-over-year. Revenue was higher year-over-year driven by strong Ryzen processor sales.

For the third quarter of 2020, AMD expects revenue to be approximately $2.55 billion, plus or minus $100 million, an increase of approximately 42 percent year-over-year. AMD expects non-GAAP gross margin to be approximately 44 percent in the third quarter of 2020. Gross margin is expected to increase year-over-year primarily driven by Ryzen and EPYC processor sales.

AMD now expects 2020 revenue to grow by approximately 32 percent compared to 2019 driven by strength in PC, gaming and data center products. Non-GAAP gross margin is expected to be approximately 45 percent.

Shares of Advanced Micro Devices were up nearly 10% after hours.