AMD earnings report Q1 2023

AMD reported first-quarter results Tuesday that showed revenue fell 9% year-over-year. While earnings and sales beat Wall Street expectations, AMD’s guidance for the current quarter was light and shares fell more than 3% in extended trading.

Here’s how the company fared against Refinitiv consensus estimates for the quarter ending in December:

• EPS: $0.60 per share, adjusted, versus $0.56 per share expected
• Income: $5.35 billion, versus $5.3 billion adjusted

AMD said it expected about $5.3 billion in sales in the current quarter, against expectations of $5.48 billion. However, in a statement, AMD CEO Lisa Su signaled that the company sees “growth in the second half as the PC and server markets strengthen.”

Net loss for the company was $139 million, or a loss of nine cents per share, compared to net income of $786 million, or $0.56 per share, in the same quarter last year. AMD excludes certain losses on investments and acquisition-related costs from earnings.

The biggest drop came in AMD’s client group, which includes sales from PC processors. AMD reported $739 million in sales in the category, down 65% from $2.1 billion in sales in the same period last year.

AMD’s report comes as the PC industry is in a deep slump, with shipments falling 30% in the first quarter, according to IDC.

AMD’s data center segment grew slightly during the year, to $1.295 billion from $1.293 billion last year. AMD management also said the category is likely to grow in the current quarter.

AMD’s gaming segment, which includes graphics processors for PCs as well as chips for consoles such as the Sony Playstation 5, reported $1.76 billion in sales, down slightly from last year’s $1.88 billion.

While the results showed a lack of growth, they came at a tough time for chipmakers. Last week, Intel, AMD’s primary competitor in the PC and server chip markets, reported that overall sales fell 36%.