Advanced Micro Devices (AMD) beats Q1 earnings and revenue estimates; stock surges

Advanced Micro Devices (NASDAQ: AMD) first quarter 2019 earnings and revenue surpassed analysts’ views. The semiconductor giant reported earnings of 6 cents per share on revenue of $1.27 billion. Analysts had expected AMD to post earnings of 5 cents per share on revenue of $1.26 billion. AMD stock, which was down 0.22% at $27.63 when market closed today, increased about 6% during extended trading hours.

AMD had guided revenue to come in about $1.25 billion, plus or minus $50 million for the first quarter of 2019. On a GAAP basis, earnings per share stood at $0.01 for the recently completed quarter compared to earnings per share of $0.08 a year ago. Revenue decreased 23% year-over-year primarily due to lower revenue in the Computing and Graphics segment.

For the second quarter of 2019, AMD expects revenue to be approximately $1.52 billion, plus or minus $50 million, an increase of approximately 19% sequentially and a decrease of approximately 13% year-over-year.

The sequential increase in Q2 outlook is expected to be driven by growth across all businesses. The year-over-year decrease is expected to be primarily driven by lower graphics channel sales, negligible blockchain-related GPU revenue and lower semi-custom revenue.

“We delivered solid first quarter results with significant gross margin expansion as Ryzen and EPYC processor and datacenter GPU revenue more than doubled year-over-year,” said Dr. Lisa Su, CEO. “We look forward to the upcoming launches of our next-generation 7nm PC, gaming and datacenter products which we expect to drive further market share gains and financial growth,” he added.

Intel, which reported its recently ended quarter’s results last Thursday, plunged 9% on issuing a weak outlook for 2019.

Tech giant Apple (AAPL) also reported its recently ended quarter results after the bell today. Shares of Apple were also trading up about 5% in the after-hours as the company beat top and bottom line numbers.

Year-to-date, shares of AMD had gained 50% and jumped 154% in the past 52 weeks.

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