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Mar 28, 2020
AMD Q1 2020 Earnings Report
AMD's first quarter results were reported with revenue increasing 40% year-over-year and gross margin expanding to 46%.
Key Takeaways
AMD reported strong first quarter 2020 financial results, with revenue up 40% year-over-year driven by Ryzen and EPYC processors. Gross margin also expanded significantly. While near-term demand uncertainty is expected, AMD's financial foundation is solid.
Revenue was $1.79 billion, up 40% year-over-year.
Gross margin was 46 percent, up 5 percentage points year-over-year.
Operating income was $177 million.
Diluted earnings per share was $0.14.
AMD
AMD
Forward Guidance
For the second quarter of 2020, AMD expects revenue to be approximately $1.85 billion, plus or minus $100 million, an increase of approximately 21 percent year-over-year and 4 percent sequentially. AMD expects non-GAAP gross margin to be approximately 44 percent.
Positive Outlook
- Revenue to be approximately $1.85 billion, plus or minus $100 million
- Increase of approximately 21 percent year-over-year
- Increase of 4 percent sequentially
- Year-over-year increase is expected to be primarily driven by growth of Ryzen and EPYC processor sales
- Sequential increase is expected to be primarily driven by EPYC processor and semi-custom sales
Challenges Ahead
- Expects weaker COVID-19 related consumer demand in the second half of the year
- Non-GAAP gross margin to be approximately 44 percent
- Sequential decrease is expected to be primarily due to the initial ramp of next-generation semi-custom products
- Uncertainties in the near-term demand environment
- The ongoing COVID-19 pandemic could materially adversely affect AMD’s business, financial condition and results of operations