AMD Q4 2017 and Full Year 2017 Financial Results

FrgMstr

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SANTA CLARA, Calif. - Jan. 30, 2018 - AMD (NASDAQ:AMD) today announced revenue for the fourth quarter of 2017 of $1.48 billion, operating income of $82 million and net income of $61 million or diluted earnings per share of $0.06. Non-GAAP(1) operating income was $103 million, non-GAAP(1) net income was $88 million and non-GAAP(1) diluted earnings per share was $0.08.

For fiscal 2017, the Company reported revenue of $5.33 billion, operating income of $204 million and net income of $43 million or diluted earnings per share of $0.04. Non-GAAP(1) operating income was $301 million, non-GAAP(1) net income was $179 million and non-GAAP(1) diluted earnings per share was $0.17.


You can read the full press statement here (PDF).

Update: Lisa Su's preferred remarks during the earnings call (PDF). And she reiterates AMD's previous thoughts on Meltdown and Spectre exposure.

Security is, and always has been, a fundamental focus for AMD across all our products. We are vigilant about security in both our product design and throughout the product life cycle. As new exploits arise, like we have seen with Spectre and Meltdown, we are dedicated to responding with speed and focus to keep our customers and partners informed and protected.

As a reminder, we believe Meltdown is not applicable to AMD processors. For Spectre Variant 1, we continue actively working with our ecosystem partners on mitigations, including operating system patches that have begun to roll out. We continue to believe that Variant 2 of Spectre is difficult to exploit on AMD processors, however we are deploying CPU microcode patches — in combination with OS updates ― to provide additional mitigation steps.

Longer-term, we have included changes in our future processor cores, starting with our "Zen2" design, to further address potential Spectre-like exploits.



“2017 marked a key inflection point for AMD as we re-shaped our product portfolio, delivered 25 percent annual revenue growth, expanded gross margin and achieved full-year profitability," said Dr. Lisa Su, AMD president and CEO. "We are even more excited about 2018 as we launch our next wave of high-performance products and continue to position AMD as one of the premier long-term growth companies in the technology industry.”

For Q1 2018, AMD expects revenue to be approximately $1.55 billion, plus or minus $50 million, an increase of 32 percent year-over-year, primarily driven by the strength of the ramp of new Ryzen, GPU and EPYC products.


 
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dgz

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Stock is still low, though. nvidia is 240+ now lol. I should've bought a lot moar
 

Dan UCF

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So since they were profitable Q4 that means it is time to sell and then buy in again? I never understand why stocks drop after good news like this. Maybe short term day traders versus long term holders?
 

andrewaggb

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Stock is still low, though. nvidia is 240+ now lol. I should've bought a lot moar

True, but both grew about 20% since early december when eth mining kicked off again. I just hope when AMD's navi finally lands that it's much better than gcn. I'd rather they were selling out of video cards because they were competitive with nvidia for perf/watt/$$$ for gaming and machine learning vs mining. Short term mining moves inventory and buys AMD time but at some point they need a proper answer to Pascal+.

On a positive note I have a couple Ryzen machines and they are fine. The Ryzen 12nm refresh and the 2200g/2400g sound like the right products at the right time. I'll probably buy one of the new chips. And they did come out better than intel on the spectre/meltdown issues but intel is saying they'll have processors with fixes for these in late 2018 and I think Zen2 is further away than that (though I'd be happy for somebody to show me otherwise).
 

OutOfPhase

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Good on them. I have always been impressed by Dr. Su. She's the real deal.
 

mullet

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I really wish AMD the best I really hope they make as much money as they can, all my next systems will be AMD only.
 

SighTurtle

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If you wanna see how the market takes AMD's Q4 report, wait a week before declaring anything. As for why it might be bouncing around, this article suggests disappointment in AMD's guidance on gross margin, 36% predicted for 2018. For reflection Q4 predicted and actual is 35%.
 

CombatChrisNC

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you realize price per share is completely meaningless right?

Not 100% true. It would be really hard for many people to buy even a single share of Berkshire Hathaway.

And Nv is also many many many times larger just in cap value off the top of my head.
 

EODetroit

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Hard to tell about the stock since the broad market was down significantly today. After hours it was about even. I think AMD is probably a bit undervalued. I've been long AMD via options or stock most of 2017 but I let that position close out. Might re-open it.
 

psyclist

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I believe the market will begin to fall in line behind them when they realize what sort of turnaround they have done in the past 3 years...and that its sustainable growth. Mining sure helped them move all their Vega/Polaris inventory, looking forward to 2018 with AMD, APU's, Ryzen Refresh, Vega Refresh and Epyc in the enterprise market...Gonna be a solid year for sure, PlayStation5 has got to be on the horizon as well. They are firing on all cylinders right now...
 

OrangeKhrush

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I believe the projections for AMD calls for abigger 2018 with Q1 products, EPYC having a full years acceas, ryzen+ updates but most importantly APUs for mobility. AMD remains committed to attracking new markets and clients by innovating.

It is refreshing to see after years of barely staying solvent.

On stock markets AMD will continue to be a shorts investment, stocks are volitile markets and people are money grabbers.
 

gamerk2

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So since they were profitable Q4 that means it is time to sell and then buy in again? I never understand why stocks drop after good news like this. Maybe short term day traders versus long term holders?

One of two things happens:

1: Either the company was less profitable then expected, leading to investors giving up hope and running for the hills

2: The company meets/beats expectations, investors sell on the initial stock rise to lock in their gains, then buy back in after the stock drops a bit as a direct result of their initial selloff.
 

alamox

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the biggest income from their road map is APU's and Epyc, and they are not released yet, epyc seem to have a good momentum with meltdown, APUs i thought it would be the product that could skyrocket their revenue, but then it showed up without HBM, now i don't know what to think, memory bandwidth was the problème with older APUs(and cpu :p) and it's still the case unfortunatly ( minus the cpu ).
intel seem to have snaged the APU momentum from AMD imo, now let's see how profitable this intel deal will be in 2018, but i think intel won't sell that many skyG.
 

OrangeKhrush

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One of two things happens:

1: Either the company was less profitable then expected, leading to investors giving up hope and running for the hills

2: The company meets/beats expectations, investors sell on the initial stock rise to lock in their gains, then buy back in after the stock drops a bit as a direct result of their initial selloff.

it was number 2
 

ole-m

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the biggest income from their road map is APU's and Epyc, and they are not released yet, epyc seem to have a good momentum with meltdown, APUs i thought it would be the product that could skyrocket their revenue, but then it showed up without HBM, now i don't know what to think, memory bandwidth was the problème with older APUs(and cpu :p) and it's still the case unfortunatly ( minus the cpu ).
intel seem to have snaged the APU momentum from AMD imo, now let's see how profitable this intel deal will be in 2018, but i think intel won't sell that many skyG.

Maybe cause they used DDR3 on their older apu's also their memory controller wasn't good before.
Their APU's in conjuction with their good memory controller which apparently is even better on zen+ to deliver higher bandwidth if delivered with 2666-2933 mhz memory is sufficient for target market.
Their semicustom design with Intel is also going to bring their brand out solidifying a wider audience later on when Intel maybe get their own gpu.

I know AMD will be on a pretty good roll till 2020 with market share capture but after that is anyone's guess.
Intel cpu in 2019 is also a unknown, can the sleeping giant compete on price with a inferior product model ? (Not looking at performance but rather zepplin core and it's very very modular design which makes zepplin > all intel cores from a business perspective.)


Needless to say, I'm excited!
 

Tyns

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I think the share price will tank again. They're profitable but not by much and the current valuation reflects extreme growth, which they don't have. I also think memory prices are going to cool PC demand more (Samsung announced they're converting some DRAM lines to image sensors... wow), and I'm sure Nintendo's insane results (not even the fanboys saw that coming) may cool demand for XBox/PS which hurts AMD.
 

Verge

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Not 100% true. It would be really hard for many people to buy even a single share of Berkshire Hathaway.

And Nv is also many many many times larger just in cap value off the top of my head.
Ummmm

Sure. Nailed it.
 

motqalden

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This thread is entirely too happy. . . too entirely without conflict. I cast "Summon Juangra." :)



(and really, no AMD thread is complete without him, it seems)


These were my thoughts as soon as I saw the headline. I am sure he will spin this in a negative way somehow
 

Nobu

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So since they were profitable Q4 that means it is time to sell and then buy in again? I never understand why stocks drop after good news like this. Maybe short term day traders versus long term holders?
If you've been holding for a while and your holdings are considered long-term, then now would be a good time to sell (especially if you have lots of unrealized gains), since you wont be taxed as much on long-term gains and you can put them toward other stocks which are currently down (or reinvest in AMD if the price drops enough to offset taxes later on and you feel confident that there are yet more gains to be had).
 
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