AMD Updates Guidance; Q3 Profit Tops Estimates

(RTTNews) - AMD (AMD) said it now expects 2020 revenue to grow by approximately 41 percent compared to 2019, up from prior guidance of 32 percent. Non-GAAP gross margin is expected to be approximately 45 percent, consistent with prior guidance.

For the fourth quarter of 2020, AMD expects revenue to be approximately $3.0 billion, plus or minus $100 million, an increase of approximately 41 percent year-over-year. AMD expects non-GAAP gross margin to be approximately 45 percent in the fourth quarter.

Third quarter non-GAAP earnings per share was $0.41 compared to $0.18 a year ago. On average, 30 analysts polled by Thomson Reuters expected the company to report profit per share of $0.35 for the quarter. Analysts' estimates typically exclude special items. Non-GAAP gross margin was 44%, up 1 percentage points.

Third quarter revenue was $2.80 billion, up 56 percent year-over-year. Computing and Graphics segment revenue was $1.67 billion, up 31 percent. Enterprise, Embedded and Semi-Custom segment revenue was $1.13 billion, up 116 percent. Analysts expected revenue of $2.56 billion for the quarter.

"Our business accelerated in the third quarter as strong demand for our PC, gaming and data center products drove record quarterly revenue," said Lisa Su, AMD CEO.

Cash, cash equivalents and short-term investments were $1.77 billion at the end of the quarter.