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Jun 27, 2020

AMD Q2 2020 Earnings Report

AMD reported strong second-quarter results, driven by Ryzen and EPYC processor sales, with revenue up 26% year-over-year.

Key Takeaways

AMD's second-quarter results showed significant growth, with revenue reaching $1.93 billion, a 26% increase year-over-year. This growth was primarily driven by strong sales of Ryzen and EPYC processors. The company raised its full-year revenue outlook, anticipating further growth in multiple markets.

Revenue was $1.93 billion, up 26% year-over-year, driven by higher Computing and Graphics segment revenue.

Gross margin was 44 percent, up 3 percentage points year-over-year, driven by Ryzen and EPYC processor sales.

Operating income was $173 million, compared to $59 million a year ago.

Diluted earnings per share was $0.13, compared to $0.03 a year ago.

Total Revenue
$1.93B
Previous year: $1.53B
+26.2%
EPS
$0.18
Previous year: $0.08
+125.0%
Gross Profit
$848M
Previous year: $621M
+36.6%
Cash and Equivalents
$1.78B
Previous year: $963M
+84.3%
Free Cash Flow
$152M
Previous year: -$28M
-642.9%
Total Assets
$6.58B
Previous year: $5.1B
+29.0%

AMD

AMD

AMD Revenue by Segment

Forward Guidance

For the third quarter of 2020, AMD expects revenue to be approximately $2.55 billion, plus or minus $100 million, an increase of approximately 42 percent year-over-year and 32 percent sequentially. AMD expects non-GAAP gross margin to be approximately 44 percent.

Positive Outlook

  • Revenue to be approximately $2.55 billion, plus or minus $100 million.
  • Increase of approximately 42 percent year-over-year.
  • Increase of 32 percent sequentially.
  • Increases are expected to be primarily driven by Ryzen and EPYC processor sales and next generation semi-custom products.
  • Non-GAAP gross margin to be approximately 44 percent.

Revenue & Expenses

Visualization of income flow from segment revenue to net income