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Sep 26, 2020

AMD Q3 2020 Earnings Report

AMD's business accelerated due to strong demand across PC, gaming, and data center products, resulting in record quarterly revenue and substantial year-over-year growth in net income and EPS.

Key Takeaways

AMD reported record revenue for Q3 2020 of $2.80 billion, a 56% increase year-over-year. Net income and EPS more than doubled compared to the previous year, driven by strong demand for PC, gaming, and data center products.

Revenue reached a record $2.80 billion, up 56% year-over-year.

Operating income was $449 million, a 141% increase year-over-year.

Net income was $390 million, a 225% increase year-over-year.

Diluted earnings per share was $0.32, up 191% year-over-year.

Total Revenue
$2.8B
Previous year: $1.8B
+55.5%
EPS
$0.41
Previous year: $0.18
+127.8%
Gross Margin
44%
Previous year: 43%
+2.3%
Gross Profit
$1.23B
Previous year: $777M
+58.3%
Cash and Equivalents
$1.3B
Previous year: $1.16B
+12.1%
Free Cash Flow
$265M
Previous year: $179M
+48.0%
Total Assets
$7.02B
Previous year: $5.25B
+33.7%

AMD

AMD

AMD Revenue by Segment

Forward Guidance

AMD expects revenue to be approximately $3.0 billion, plus or minus $100 million, an increase of approximately 41 percent year-over-year and 7 percent sequentially. AMD expects non-GAAP gross margin to be approximately 45 percent in the fourth quarter of 2020.

Positive Outlook

  • The year-over-year increase is expected to be primarily driven by the ramp of new Ryzen, EPYC and semi-custom products
  • Growing customer momentum.
  • AMD expects revenue to be approximately $3.0 billion, plus or minus $100 million
  • AMD expects an increase of approximately 41 percent year-over-year and 7 percent sequentially.
  • AMD expects non-GAAP gross margin to be approximately 45 percent in the fourth quarter of 2020.

Challenges Ahead

  • Actual results could differ materially depending on market conditions
  • Actual results could differ materially depending on the factors set forth under “Cautionary Statement”
  • global economic backdrop
  • customer demand signals
  • AMD now expects 2020 revenue to grow by approximately 41 percent compared to 2019, up from prior guidance of 32 percent.

Revenue & Expenses

Visualization of income flow from segment revenue to net income