Advanced Micro Devices Inc Beats Sales and Earnings Estimates; Shares Rise 5%

Advanced Micro Devices delivered more than analysts were asking for in the first quarter of 2014.

Apr 17, 2014 at 5:15PM

Image source: AMD.

Shares of Advanced Micro Devices (NASDAQ:AMD) are rising more than 5% in after-hours trading, following the release of first-quarter results.

Analysts were looking for adjusted earnings near the breakeven mark, on $1.3 billion in total sales. Instead, the microprocessor designer delivered positive non-GAAP earnings of $0.02 per share and revenue of $1.4 billion. These numbers are up from a $0.13 loss per share on $1.1 billion of sales in the year-ago quarter.

The computing solutions segment, which includes central processors for computer systems, saw sales drop 12% year over year. The division reported a $3 million operating loss.

Graphics products fared better, more than doubling its sales year-over-year on strong demand for updated Radeon graphics chips. This division reported a $91 million operating profit.

Looking ahead, AMD expects sales to rise 3% in the second quarter, compared to the just-reported first quarter, with a 3% margin of error in either direction. The current analyst view of the upcoming period's sales is for $1.36 billion, which is below the first quarter's total. Last year, AMD saw 7% sequential growth between the March-ended and June-ended quarters.

"Backed by our powerful x86 processor cores and hands-down best graphics experiences, we achieved 28 percent revenue growth from the year-ago quarter," said AMD CEO Rory Read in a prepared statement. "We are well positioned to continue to grow profitably as we diversify our business and enable our customers to drive change and win."


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