AMD Q2 Results Beat Street View, Lifts FY Revenue Outlook; Shares Up 10%

(RTTNews) - Shares of Advanced Micro Devices Inc. (AMD) gained over 10% in extended trading session Tuesday after the chip maker reported a second-quarter results that trumped Wall Street estimates and lifted its full-year revenue outlook.

Sunnyvale, California-based AMD reported second-quarter profit of $157 million or $0.13 per share, compared to last year's profit of $35 million or $0.03 per share.

Excluding items, adjusted profit for the quarter was $216 million or $0.18 per share compared to a profit of $92 million or $0.08 per share a year ago. On average, 30 analysts polled by Thomson Reuters estimated an earnings of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

AMD's revenues for the quarter grew 26 percent to $1.93 billion from $1.53 billion a year ago. Analysts had a consensus revenue estimate of $1.86 billion for the quarter.

AMD said revenue growth was driven largely by higher Computing and Graphics segment revenue. Revenue was up 8 percent quarter-over-quarter primarily driven by higher Enterprise, Embedded and Semi-Custom segment revenue.

"We delivered strong second quarter results, led by record notebook and server processor sales as Ryzen and EPYC revenue more than doubled from a year ago," said Dr. Lisa Su, AMD president and CEO. "Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in multiple markets."

Gross margin was 44 percent, up from 41 percent last year.

Looking forward to the third quarter, the company expects revenues to be about $2.55 billion, plus or minus $100 million. Analysts currently expect revenues of $2.32 billion.

For the full year 2020, AMD expects revenues growth by about 32 percent. Analysts currently expect revenue growth of 25.30 percent. Previously, the company expected revenue growth of 25 percent, plus or minus 5 percent.

AMD closed Tuesday's trading at $67.61, down $1.36 or 1.97%, on the Nasdaq. The stock, however, gained $6.41 or 9.48%, in the after-hours trading.