SUNNYVALE (dpa-AFX) - Advanced Micro Devices Inc. (AMD) Tuesday reported a first-quarter profit that rose from last year as revenues surged 40 percent and margins improved. Earnings for the quarter met Wall Street estimates, while revenues trumped expectations.
However, the shares of the company slipped nearly 4% in the after-hours trading after the company lowered its full year revenue outlook.
Sunnyvale, California-based AMD reported first-quarter profit of $162 million or $0.14 per share, compared to last year's profit of $16 million or $0.01 per share.
Excluding items, adjusted profit for the quarter was $222 million or $0.18 per share compared to a profit of $62 million or $0.06 per share a year ago. On average, 31 analysts polled by Thomson Reuters estimated an earnings of $0.18 per share for the quarter. Analysts' estimates typically exclude special items.
AMD's revenues for the quarter grew 40 percent to $1.79 billion from $1.27 billion a year ago. Analysts had a consensus revenue estimate of $1.78 billion for the quarter.
AMD said revenue growth was driven largely by Computing and Graphics business segment.
'We executed well in the first quarter, navigating the challenging environment to deliver 40 percent year-over-year revenue growth and significant gross margin expansion driven by our Ryzen and EPYC processors,' said Dr. Lisa Su, AMD president and CEO.
Gross margin was 46 percent, up from 41 percent last year.
Looking forward to the second quarter, the company expects revenues to be about $1.85 billion, plus or minus $100 million. Analysts currently expect revenues of $1.92 billion.
For the full year 2020, AMD expects revenues growth of 25 percent, plus or minus 5 percent, over 2019. Analysts currently expect revenue growth of 27.6 percent. Previously, the company expected revenue growth of 28% to 30%.
The company said it expects weaker demand in the second half of the year due to the coronavirus pandemic.
AMD closed Tuesday's trading at $55.51, down $0.98 or 1.73%, on the NYSE. The stock further dropped $2.20 or 3.96% in the after-hours trade.
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