AMD Reports Q4 Beat, Strong Guidance

Advanced Micro Devices, Inc. AMD delivered a solid fourth quarter earnings and sales beat Tuesday.

AMD reported fourth quarter adjusted earnings of 8 cents per share, beating estimates by 3 cents. Sales came in $70 million higher than estimates at $1.48 billion.

"2017 marked a key inflection point for AMD as we re-shaped our product portfolio, delivered 25 percent annual revenue growth, expanded gross margin and achieved full-year profitability," said Dr. Lisa Su, AMD President and CEO. "We are even more excited about 2018 as we launch our next wave of high-performance products and continue to position AMD as one of the premier long-term growth companies in the technology industry."

The company also issued strong first quarter sales guidance in the range of $1.5 billion-$1.6 billion, above the $1.25 billion consensus estimate.

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Q4 Highlights

Revenue up 34 percent year-over-year;
Computing and graphics segment revenue up 60 percent year-over-year and 17 percent sequentially; and
Operating income of $85 million, compared to a $21 million loss year-over-year.

AMD shares fell sharply following the release, falling as much as 7 percent in after-hours trading.

Traders may have been reacting to a cautionary statement section that mentions, among a number of other potential risks that the company is subject to claims related to side-channel exploits, may face claims or litigation for future vulnerabilities.

The stock recovered from the initial drop, and was back in the green at the $12.92 area as of 4:37 p.m. ET.

Options Traders Hint At Bullish AMD Sentiment Heading Into Earnings