AMD Q3 2021 Earnings Report Recap

AMD beat on earnings and on revenue

Key Takeaways

  • Revenue for AMD's Enterprise, Embedded and Semi-Custom segment came in above expectations.
  • The Enterprise, Embedded and Semi-Custom segment has been growing much faster than the company's other main segment as processing chips are being embedded in more and more products.
  • The segment's sales were partly driven by EPYC processors as data center sales more than doubled year over year.
AMD Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted EPS Beat $0.73 $0.67
Revenue Beat $4.3B $4.1B
Enterprise, Embedded and Semi-Custom Segment Revenue Beat  $1.9B $1.8B

Source: Predictions based on analysts' consensus from Visible Alpha

Advanced Micro Devices (AMD) Financial Results: Analysis

Advanced Micro Devices, Inc. (AMD) reported Q3 FY 2021 earnings that surpassed consensus estimates. Adjusted earnings per share (EPS) beat expectations, rising 78.0% compared to the year-ago quarter. Revenue also exceeded expectations, up 54.0% year over year (YOY). AMD's Enterprise, Embedded and Semi-Custom segment posted revenue that came in above forecasts.

The company's shares rose as much as 1% in extended trading. Over the past year, AMD's shares have provided a total return of 49.5%, well above the S&P 500's total return of 34.5%.

AMD Enterprise, Embedded and Semi-Custom Revenue

AMD's Enterprise, Embedded and Semi-Custom segment revenue rose 68.9% YOY, slowing from the previous quarter's rapid pace. The segment encompasses server and embedded processors, semi-custom System-on-Chip (SoC) products, development services, and game console technology. It does not include AMD's desktop and notebook microprocessors, which are included in the company's Computing and Graphics segment.

The Enterprise, Embedded and Semi-Custom segment is the smaller of the company's two main segments, generating a little over one-third of companywide revenue in FY 2020. However, it has been growing much faster than the Computing and Graphics segment as processing chips are being embedded in more and more products.

The segment's growth in the third quarter were fueled by sales of its EPYC processors, which are used by data centers, and semi-custom product sales. AMD said that data center sales more than doubled compared to the year-ago quarter.

AMD Guidance

AMD expects revenue to increase approximately 39% YOY in Q4 FY 2021. It also expects annual revenue for the full 2021 fiscal year to rise approximately 65%, driven by growth across all of its business segments.

AMD's next earnings report (for Q4 FY 2021) is estimated to be released on Feb. 1, 2022.

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