AMD Q4 earnings beat expectations, despite slowing PC sales
Chip maker AMD (AMD) reported its Q4 2022 earnings after the bell on Tuesday, beating analysts' expectations. The report comes just days after rival Intel (INTC) announced disappointing earnings and guidance.
Here are the most important numbers from the report compared to what Wall Street was expecting from the company, as compiled by Bloomberg.
Revenue: $5.6 billion versus $5.5 billion expected
Adjusted EPS: $0.69 versus $0.67 expected
Data Center: $1.7 billion versus $1.6 billion expected
Client: $903 million versus $995 million expected
Gaming: $1.6 billion versus $1.5 billion expected
Embedded: $1.4 billion versus $1.3 billion expected
Shares of AMD were up 2.7% immediately following the announcement.
"2022 was a strong year for AMD as we delivered best-in-class growth and record revenue despite the weak PC environment in the second half of the year," AMD CEO Dr. Lisa Su said in a statement. "Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio.”
Despite the positive Q4 report, AMD warned that it will see a 10% decline in revenue in Q1. That looks to be largely the result of an expected drop in its Client and Gaming segments' revenue.
AMD’s earnings come as the broader PC industry deals with a massive slowdown in computer sales following the explosive growth the sector saw during the pandemic. The company reported a 51% year-over-year decline in processor shipments, and an operating loss for its Client segment of $152 million, compared to income of $530 million just last year.
According to Gartner, Q4 worldwide PC shipments declined a stunning 28.5%, the biggest decline since the firm started following shipments in the mid-1990s. Intel saw similarly poor performance in its Client Computing business revenue falling 36% year-over-year to $6.6 billion from $10.1 billion in Q4 2021.
Microsoft (MSFT), meanwhile, saw its Windows OEM business, which supplies Windows licenses to third-party customers, fall 39% year-over-year in its most recent quarter.
Still, AMD reported 42% year-over-year grown in its Data Center business on revenue of $1.7 billion. Intel’s Data Center and AI business revenue, meanwhile, fell 33% year-over-year.
AMD’s graphics rival Nvidia (NVDA) for its part will report its earnings on Feb. 22.
Sign up for Yahoo Finance's Tech newsletter
More from Dan
Apple says using its own chips gives it a 'unique advantage' over PC industry
Big Tech layoffs are a problem of the industry's own making: Morning Brief
Got a tip? Email Daniel Howley at firstname.lastname@example.org. Follow him on Twitter at @DanielHowley.
For the latest earnings reports and analysis, earnings whispers and expectations, and company earnings news, click here
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube