cageymaru

Fully [H]
Joined
Apr 10, 2003
Messages
21,474
AMD has reported its Q4 2018 and annual 2018 financial results. The Q4 revenue was $1.42B, with earnings of 8 cents per share; an increase of 6% y/y. This missed Wall Street estimates of $1.44 billion in revenue. AMD reported that the growth was driven by the Computing and Graphics segment. Revenue was down 14% compared to the prior quarter as a result of lower revenue in the Enterprise, Embedded and Semi-Custom segment. Also reported was a Non-GAAP Gross Margin of 41% (+7 percentage points Y/Y). Gross margin improvements were primarily driven by Ryzen and EPYC processor sales. Non-GAAP net income of $87M (+$79M Y/Y), and Non-GAAP EPS of .08 (+.07 Y/Y) were also highlighted in the report. AMD announced that strong sales of Ryzen processors contributed to a 9% y/y increase in Computing and Graphics segment revenue and significantly boosted operating income. Datacenter GPU sales were also higher. Strong EPYC datacenter processor sales were offset by lower semicustom sales and server-related investments in the Enterprise, Embedded and Semi-Custom segment.

AMD announced its outlook for Q1 2019. AMD expects revenue to be approximately $1.25 billion, plus or minus $50 million, a decrease of approximately 12 percent sequentially and 24 percent year-over-year. "Analysts had projected first-quarter sales to be $1.47 billion, according to a Refinitiv consensus estimate." The sequential decrease is expected to be primarily driven by continued softness in the graphics channel and seasonality across the business. The year-over-year decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales. In addition, semi-custom revenue is expected to be lower year-over-year while Ryzen, EPYC and Radeon datacenter GPU product sales are expected to increase. AMD announced a new amendment to its wafer supply agreement with GLOBALFOUNDRIES Inc. (GF). AMD will still use GF for the 12nm node and above for the years 2019 through 2021. AMD is now free to purchase wafers from any foundry at the 7nm node and beyond without any one-time payments or royalties. AMD president and CEO Dr. Lisa Su's prepared remarks are found here.

"In 2018 we delivered our second straight year of significant revenue growth, market share gains, expanded gross margin and improved profitability based on our high-performance products. Importantly, we more than doubled our EPYC processor shipments sequentially and delivered record GPU datacenter revenue in the quarter," said Dr. Lisa Su, AMD president and CEO. "Despite near-term graphics headwinds, 2019 is shaping up to be another exciting year driven by the launch of our broadest and most competitive product portfolio ever with our next-generation 7nm Ryzen, Radeon, and EPYC products." AMD forecasts 2019 sales to grow in the "high single digit percentage" range. Wall Street had forecast 2019 sales of $6.88 billion, which would represent year-over-year revenue growth of 6 percent.
 

msshammy

n00b
Joined
Aug 9, 2012
Messages
54
Just once I would like to be able to say.. "I expect my earnings to be x amount this year.. Give or take 50 million of course"

Good for them.. hope it continues.
 

Eymar

Limp Gawd
Joined
Sep 15, 2005
Messages
326
What a difference a year makes. AMD is now a model of consistency and should be for a while. Then again last year no one saw Nvidia being in as much trouble as there in now from a stock perspective. Tech stocks, go figure.
 

Mega6

2[H]4U
Joined
Aug 13, 2017
Messages
3,587
The NVIDIA resulting beat down and epic sales helped and after hours pop up. Nice surprise.
 

nightanole

[H]ard|Gawd
Joined
Feb 16, 2003
Messages
2,032
Where were all the armchair analysts saying AMD couldn't survive even if Zen was successful?

If you can hold AMD long enough to qualify for capital gains, you timed it dam good. May the lord bless those who bought and held during the core2duo days and later.

I still remember in june 99 when i had 10 grand to invest, i was like "wow i could have bought a turbo PT cruiser with my winnings". Then again if i had bought in dec 99, and held, id be like "yup still breaking even, im staying long".
 

[Spectre]

[H] Admin
Staff member
Joined
Aug 29, 2004
Messages
20,804
If you can hold AMD long enough to qualify for capital gains, you timed it dam good. May the lord bless those who bought and held during the core2duo days and later.

I still remember in june 99 when i had 10 grand to invest, i was like "wow i could have bought a turbo PT cruiser with my winnings". Then again if i had bought in dec 99, and held, id be like "yup still breaking even, im staying long".

If you bought AMD at it's high, rode it to the bottom and then sold you would still come out better than having ever bought a PT Cruiser.
 

filip

2[H]4U
Joined
Aug 15, 2012
Messages
2,585
Well shit, this is a surprise to some extent. It looked like the market was burning semi stocks but having a quarter that was better than last year was good enough.
 

nightanole

[H]ard|Gawd
Joined
Feb 16, 2003
Messages
2,032
If you bought AMD at it's high, rode it to the bottom and then sold you would still come out better than having ever bought a PT Cruiser.

Well at least i said nah, and paid for college with my 10 grand. Still, i reaaaaaaally wanted a pt cruiser at the time. I still remember shops modding them with turbos before the "gt cruiser" came out.

SNiff, now if you have a 90's pt cruiser, the amount of frame rott it would have would make it impossible to put on a car lift without cracking in 2.
 

geok1ng

2[H]4U
Joined
Oct 28, 2007
Messages
2,130
So AMD is launching 7nm Ryzen, Radeon, and EPYC products and expects to increase sales less than 10% in 2019?
 
Joined
Oct 11, 2018
Messages
543
on one hand, desktop market is stagnant and shrinking. So increasing revenue within it's market space is pretty good.

On the other hand, the market that is growing (mobile) is one where you either have anti-competitive practices keeping amd out (laptops) or they're just completely not in it altogether (cellular SoC's).

So any growth with that situation is pretty good.
 

dgz

Supreme [H]ardness
Joined
Feb 15, 2010
Messages
5,838
It's sad when you have a competitive product and beat your main competitor solidly in terms of price/performance, you only gain so little. Why :(
 
Joined
Oct 11, 2018
Messages
543
It's sad when you have a competitive product and beat your main competitor solidly in terms of price/performance, you only gain so little. Why :(

because the market is determined by more than just performance and merit. Sometimes those things dont really matter at all.
 

steakman1971

2[H]4U
Joined
Nov 22, 2005
Messages
2,433
That said, I see AMD as a stock I will be in for a few years. I believe they will gain market share in the processor space. Ryzen and Epyc will continue to see growth
I also hope they will be more competitive in the GPU space - but do not think they will top Nvidia. I wonder, do they even want to compete at the top tier? They have Xbox, Sony, and Apple using their GPU's now. They are targeting a price point these companies are willing to pay for - we aren't talking 2080-level beasts. My guess (again, I'm just speculating and could be way off base) is they will go for the mid-range.
(Kicking myself for not buying in closer to 16...)
 

Maddness

[H]ard|Gawd
Joined
Oct 24, 2014
Messages
1,254
It certainly looks AMD took the right approach investing mainly in the CPU market.
 

Mega6

2[H]4U
Joined
Aug 13, 2017
Messages
3,587
It's sad when you have a competitive product and beat your main competitor solidly in terms of price/performance, you only gain so little. Why :(
Slim profit margins, need more market share. Epic increased the margins and this should continue.
 

maxius

2[H]4U
Joined
Dec 17, 2001
Messages
3,376
Slim profit margins, need more market share. Epic increased the margins and this should continue.

Considering a decade ago it was firesale time at amd with a lot of business units that today are key parts of other companies. amd is well on its way back up from the bottom
 

Mega6

2[H]4U
Joined
Aug 13, 2017
Messages
3,587
Considering a decade ago it was firesale time at amd with a lot of business units that today are key parts of other companies. amd is well on its way back up from the bottom
Also, consoles and mid-range vid cards are slim profit margin as well.

Increased profit margin shows epyc's success.
 
  • Like
Reactions: GHRTW
like this

maxius

2[H]4U
Joined
Dec 17, 2001
Messages
3,376
Also, consoles and mid-range vid cards are slim profit margin as well.

Increased profit margin shows epyc's success.

the semi-custom business is a one design per client and usually a multi year revenue stream this helped a lot as it provided the baseline for the company to grow into more profitable areas that increase margins
 

Mega6

2[H]4U
Joined
Aug 13, 2017
Messages
3,587
the semi-custom business is a one design per client and usually a multi year revenue stream this helped a lot as it provided the baseline for the company to grow into more profitable areas that increase margins
Yes large volume off slim margins. It helped. But lately decreasing due to no new console design introductions. New Xbox will help semi-custom in 2020 @ rumored 4k, zen2/navi APU, Ray tracing.
 
Last edited:

maxius

2[H]4U
Joined
Dec 17, 2001
Messages
3,376
Yes large volume off slim margins. It helped. But lately decreasing due to no new console design introductions. New Xbox will help semi-custom in 2020 @ rumored 4k, zen2/navi APU, Ray tracing.

console sales are still going strong the vanilla and the pro models
 

haste.

[H]ard|Gawd
Joined
Nov 11, 2011
Messages
1,651
Love non gaap reports lol. But I literally just had a conversation explaining the amazing job lisa su has done at AMD with my wife. Keep it up and keep the pressure on intel. This is shaping up to look more like 2004 than the stagnant dominated market place of the last decade. Even intel entering the graphics sector is good to put a little heat on nvidia (although ryzen might shift a few of those resources). All in all thank goodness AMD is back in the black and looks to have a winner of a platform for CPU to build on. Now get to work on your graphics division because its embarrassing you! Then it's a war and would be fascinating.
 

knowom

Limp Gawd
Joined
Aug 15, 2008
Messages
425
It's in investor speculation and future releases driving the stock higher.
Speculation is that what you call working silicone and 7nm in the pike while Intel fumbles with 10nm? Ok Jim Cramer AMD is home behavior got it and the only reason they exist is because Intel is a near monopoly!
 
Joined
Jun 30, 2008
Messages
689
For AMD that is amazing, Team Red has, for a lot years, meant something different than Team Green or Team Blue did.


Their PE is insane , and they lowered their guidance for Q1 and STILL shot up around %15 which is odd. Stock is a lot of speculators it seems
 

Mega6

2[H]4U
Joined
Aug 13, 2017
Messages
3,587
Their PE is insane , and they lowered their guidance for Q1 and STILL shot up around %15 which is odd. Stock is a lot of speculators it seems
Pe matters why? look at amazon and Tesla. Nobody cares about theirs because of POTENTIAL.
 

nightanole

[H]ard|Gawd
Joined
Feb 16, 2003
Messages
2,032
Pe matters why? look at amazon and Tesla. Nobody cares about theirs because of POTENTIAL.

That and PE goes insane when a company makes almost no real profit. If the company made 1 penny per share, its pe would be in the hundreds.
 
Top