Advanced Micro Devices Inc. ticked higher in the extended session Tuesday after the chip maker turned in yet another beat-and-raise quarter amid a record high stock price.
AMD
AMD,
shares rose 1% in after-hours trading, following 0.5% rise in the regular session to close at a fresh record high of $122.93, its fourth record close in a row.
The company reported third-quarter net income of $923 million, or 75 cents a share, compared with $710 million, or 58 cents a share, in the year-ago period. After adjusting for stock-based compensation and other factors, the Santa Clara, Calif.-based company reported earnings of 73 cents a share, compared with 41 cents a share in the year-ago period. Revenue rose to $4.31 billion from $2.8 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast adjusted earnings of 66 cents a share on revenue of $4.11 billion, after AMD projected between $4 billion to $4.2 billion.
“AMD had another record quarter as revenue grew 54% and operating income doubled year-over-year,” said AMD Chief Executive Lisa Su in a statement.
“3rd Gen EPYC processor shipments ramped significantly in the quarter as our data center sales more than doubled year-over-year” Su said “Our business significantly accelerated in 2021, growing faster than the market based on our leadership products and consistent execution.”
Sales from enterprise embedded and semi-custom chips — the unit that includes data-center and gaming-console revenue — rose 69% to $1.91 billion, compared with $1.13 billion a year ago. Analysts had forecast $1.78 billion. Intel Corp.’s
INTC,
data center sales rose 10% in comparison.
In its computing and graphics segment, AMD reported second-quarter sales of $2.4 billion, up from $1.67 billion last year, compared with analyst expectations of $2.33 billion.
AMD raised guidance for the full year yet again, as it has at every earnings report this year, and now projects sales to grow about 65% year over year compared with a forecast of 60% growth in the previous guidance. AMD reported revenue of $9.76 billion last year, so that suggests sales of about $16.1 billion this year, while analysts were forecasting revenue of $15.52 billion, according to FactSet.
AMD expects fourth-quarter revenue of $4.4 billion to $4.6 billion, while analysts had been projecting $4.25 billion, according to FactSet.
Over the past 12 months, AMD shares have gained 50%. In comparison, the PHLX Semiconductor Index
SOX,
has gained 47%, the S&P 500 index
SPX,
has risen 35%, and the tech-heavy Nasdaq Composite Index
COMP,
is up 34%.
This post was originally published on Market Watch
