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The company expects first-quarter 2022 revenues to be $5 billion (+/-$100 million), which indicates year-over-year growth of 45% and quarter-over-quarter improvement of 4%.
The year-over-year growth is expected to be driven by robust sales across all its businesses. The sequential increase is projected to be led by growth across higher server and client processor revenues.
The Zacks Consensus Estimate for revenues is pegged at $5 billion, suggesting growth of 45.15% from the year-ago quarter’s reported figure.
The consensus estimate for first-quarter earnings is pegged at 91 cents per share, unchanged over the past 30 days. The figure indicates an improvement of 75% on a year-over-year basis.
Advanced Micro Devices, Inc. Price and EPS Surprise
AMD’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the earnings surprise being 17.03%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors Likely to Have Influenced Q1 Earnings
AMD’s first-quarter results are expected to have benefited from strong demand for EPYC processors, thanks to adoption by the likes of Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and International Business Machines (IBM - Free Report) .
During the to-be-reported quarter, AMD announced that Amazon’s cloud platform, Amazon Web Services (AWS), is using its third-generation EPYC processor in the latest Amazon EC2 M6a instances.
Per AWS, the C6a instances support compute-intensive workloads such as batch processing, distributed analytics, ad serving, highly scalable multiplayer gaming and video encoding. The C6a instances offer up to 15% better compute price performance over the previous generation C5a instances.
Meanwhile, Alphabet’s Google Cloud is using EPYC processors to power the new C2D virtual machine (“VM”). The latest offering brings customers strong performance and computing power for high-performance memory-bound workloads in areas like electronic design automation and computational fluid dynamics.
Supported by EPYC processors’ superior performance for computing-focused workloads, the C2D VMs can provide up to 30% better performance compared with previous generation EPYC based VMs at a comparable size.
Moreover, IBM Cloud has selected third-generation EPYC processors to expand its bare-metal service offerings. The new servers, featuring 128 cores, up to 4 TB of memory and 10 NVMe drives per server, give users full access to high-end, dual-socket performance.
AMD’s EPYC processors have also been used in developing several high-performance computing systems.
AMD is riding on higher sales of its Ryzen and Radeon processors, owing to increasing proliferation of AI and Machine Learning in industries like cloud gaming and the supercomputing domain.
The chipmaker is also likely to gain from steady momentum witnessed in the adoption of Ryzen, Radeon and semi-custom processors. These processors are being heavily utilized in the cloud, gaming, PC and data center verticals, driven by work-from-home and online-schooling trends due to the pandemic.
Moreover, continued strong demand for business PCs due to hybrid work and the return to offices is expected have benefited this Zacks Rank #3 (Hold) company’s top-line growth in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Q1 Developments
During the to-be-reported quarter, AMD’s board of directors approved a new $8-billion share repurchase program. The new authorization is in addition to the $4-billion share repurchase program announced in May 2021, under which the company has repurchased roughly $3 billion of shares.
AMD also completed the pending acquisition of Xilinx in the to-be-reported quarter. AMD expects the acquisition to be accretive to non-GAAP margins, non-GAAP earnings and free cash flow in the first year of completion.
Image: Bigstock
Advanced Micro Devices (AMD) to Post Q1 Earnings: What to Expect?
Advanced Micro Devices (AMD - Free Report) is set to release first-quarter 2022 results on May 3.
The company expects first-quarter 2022 revenues to be $5 billion (+/-$100 million), which indicates year-over-year growth of 45% and quarter-over-quarter improvement of 4%.
The year-over-year growth is expected to be driven by robust sales across all its businesses. The sequential increase is projected to be led by growth across higher server and client processor revenues.
The Zacks Consensus Estimate for revenues is pegged at $5 billion, suggesting growth of 45.15% from the year-ago quarter’s reported figure.
The consensus estimate for first-quarter earnings is pegged at 91 cents per share, unchanged over the past 30 days. The figure indicates an improvement of 75% on a year-over-year basis.
Advanced Micro Devices, Inc. Price and EPS Surprise
Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. Quote
AMD’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the earnings surprise being 17.03%, on average.
Let’s see how things are shaping up for the upcoming announcement.
Factors Likely to Have Influenced Q1 Earnings
AMD’s first-quarter results are expected to have benefited from strong demand for EPYC processors, thanks to adoption by the likes of Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and International Business Machines (IBM - Free Report) .
During the to-be-reported quarter, AMD announced that Amazon’s cloud platform, Amazon Web Services (AWS), is using its third-generation EPYC processor in the latest Amazon EC2 M6a instances.
Per AWS, the C6a instances support compute-intensive workloads such as batch processing, distributed analytics, ad serving, highly scalable multiplayer gaming and video encoding. The C6a instances offer up to 15% better compute price performance over the previous generation C5a instances.
Meanwhile, Alphabet’s Google Cloud is using EPYC processors to power the new C2D virtual machine (“VM”). The latest offering brings customers strong performance and computing power for high-performance memory-bound workloads in areas like electronic design automation and computational fluid dynamics.
Supported by EPYC processors’ superior performance for computing-focused workloads, the C2D VMs can provide up to 30% better performance compared with previous generation EPYC based VMs at a comparable size.
Moreover, IBM Cloud has selected third-generation EPYC processors to expand its bare-metal service offerings. The new servers, featuring 128 cores, up to 4 TB of memory and 10 NVMe drives per server, give users full access to high-end, dual-socket performance.
AMD’s EPYC processors have also been used in developing several high-performance computing systems.
AMD is riding on higher sales of its Ryzen and Radeon processors, owing to increasing proliferation of AI and Machine Learning in industries like cloud gaming and the supercomputing domain.
The chipmaker is also likely to gain from steady momentum witnessed in the adoption of Ryzen, Radeon and semi-custom processors. These processors are being heavily utilized in the cloud, gaming, PC and data center verticals, driven by work-from-home and online-schooling trends due to the pandemic.
Moreover, continued strong demand for business PCs due to hybrid work and the return to offices is expected have benefited this Zacks Rank #3 (Hold) company’s top-line growth in the to-be-reported quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Q1 Developments
During the to-be-reported quarter, AMD’s board of directors approved a new $8-billion share repurchase program. The new authorization is in addition to the $4-billion share repurchase program announced in May 2021, under which the company has repurchased roughly $3 billion of shares.
AMD also completed the pending acquisition of Xilinx in the to-be-reported quarter. AMD expects the acquisition to be accretive to non-GAAP margins, non-GAAP earnings and free cash flow in the first year of completion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.