AMD has completed the 4th quarter 2020, surpassing the already high expectations Wall Street largely due to sales growth at 176% of the segment, which includes server chips and graphics processors for game consoles. In 2021, AMD expects sales growth of 37%, much higher than the analytical estimates.
Shares of Advanced Micro Devices (AMD), an increase of 92.3% over the past 12 months declined in after-hours trading on Tuesday despite the release of better-than-expected financial results for the year 2020.
AMD during the holiday 4th quarter ended in December, benefited from growth in PC sales and game consoles such as the Sony PS5 and Xbox One (which supplies the processors), and the demand for GPUs from the miners of the cryptocurrency and continued growth of demand for server chips.
Given expectations of continued demand for processors for PCs and data centers, as well as continuing demand for game consoles, AMD gave good predictions for all 2021, with a warning that the first quarter seasonal sales may drop.
The revenues and profits of AMD for the 4th quarter and the entire year 2020
Earnings per share 4th quarter increased by 63% (compared with the same value of last year) to $0,52, which is just $0.05 more than analysts ‘ estimates of $0.47 per.
Quarterly revenue grew 52% to $3.24 billion, also above analytical estimates of $3,02 billion Statistics quarterly revenues and profits to AMD in the last 2 years available here.
Income units AMD
Revenue AMD “Computers and graphics” increased by 18% to $1.96 billion, mainly due to the high sales of processors Ryzen.
The income of the unit “Enterprise, embedded, and poluavtomatizirovannuju processors” has grown by 176% to $1.28 billion compared to the same period last year and 13% compared to the previous quarter, driven by higher sales of server chips EPYC processors and processors of Half-Custom for game consoles such as the Sony PS5 and Microsoft on Xbox One that came out ahead of the Christmas sales in December.
Revenues total 2020 AMD increased by 45% compared to the year 2019 to $9,76 billion, sales profit showed a growth of 108% to $2.49 billion
“In 2020, we significantly accelerated our business, delivering record annual revenue and more than doubled net profit compared with the year 2019,” said Dr. Lisa su, President and CEO of AMD.
Forward-looking statements AMD
In the current quarter, AMD expects a revenue of $3.2 billion (plus or minus $100 million), which is 79% higher than a year earlier and above the average of analysts ‘ forecasts of $2.73 billion In the same time, income for the current quarter decreased by 1% compared with the 4th quarter due to seasonality.
The sales forecast is based on full 2021, an increase of 37% to $13,38 billion, also above analysts ‘ expectations of $12,24 billion.
In January, AMD introduced a series of new mobile processors Ryzen 5000, which will start shipping in the first quarter of 2021.
AMD has stated that it expects 50% of growth in the supply of processors for laptops and PCs this year.
AMD also plans by year-end to complete the transaction the acquisition by the company Xilinx, which will strengthen its business of chips for data centers and position relative to competition with Intel.
“Our financial Outlook for 2021 underscores the strength of our product portfolio and high demand for high performance computing on PC markets, games, and data centers,” said AMD.
