Advanced Micro Devices Q4 Profit Meets View, Shares Up 8%

(RTTNews) - Advanced Micro Devices Inc. (AMD) Tuesday reported a fourth-quarter profit that rose from last year as revenues grew 6 percent and margins improved. Earnings for the quarter matched Wall Street estimates, but revenues fell short. The shares of the company gained 8% in the after-hours trading.

Sunnyvale, California-based AMD reported fourth-quarter profit of $38 million or $0.04 per share, compared to last year's loss of $19 million or $0.02 per share.

Excluding items, adjusted profit for the quarter was $87 million or $0.08 per share compared to a profit of $8 million or $0.01 per share a year ago. Twenty-eight analysts polled by Thomson Reuters estimated an earnings of $0.08 per share for the quarter. Analysts' estimates typically exclude special items.

AMD's revenues for the quarter grew 6 percent to $1.42 billion from $1.34 billion a year ago. Analysts had a consensus revenue estimate of $1.45 billion for the quarter.

AMD said revenue growth was driven largely by Computing and Graphics business segment.

Gross margin was 38 percent, up from 34 percent last year.

"In 2018 we delivered our second straight year of significant revenue growth, market share gains, expanded gross margin and improved profitability based on our high-performance products. Importantly, we more than doubled our EPYC processor shipments sequentially and delivered record GPU datacenter revenue in the quarter," said Dr. Lisa Su, AMD president and CEO.

Looking forward to the first quarter, the company expects revenues to be about $1.25 billion, plus or minus $50 million. Analysts currently expect revenues of $1.48 billion.

AMD closed Tuesday's trading at $19.25, down $0.93 or 4.61%, on the NYSE. The stock, however, rose $1.54 or 8.00% in the after-hours trade.