NASDAQ$AMD

Advanced Micro Devices Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

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.

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.

Headline financials

Total Revenue

$2.8B

Previous: $1.8B+55.5%
EPS (adj)

$0.41

Previous: $0.18+127.8%
Gross Margin

44.0%

Previous: 43.0%+2.3%
Capital Expenditures

-$220M

Previous: -$175M-25.7%
Free Cash Flow

$170M

Previous: -$55M+409.1%
Net Income

$390M

Previous: $120M+225.0%
Operating Income

$449M

Previous: $186M+141.4%
Gross Profit

$1.23B

Previous: $777M+58.3%
Cash & Equivalents

$1.3B

Previous: $1.16B+12.1%
Total Assets

$7.02B

Previous: $5.25B+33.7%
Stock-Based Comp

$76M

Previous: $54M+40.7%

Revenue & EPS history

AMD · Revenue · Quarterly

$2.8B

Q3 2020+55.5%vs Q3 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

AMD · $5.8B total across 4 segments · Q3 2023

  • Data Center
    $1.6B-0.7%
  • Gaming
    $1.51B-7.7%
  • Client
    $1.45B+42.2%
  • Embedded
    $1.24B-4.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.7%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+6.2%

Avg return

30 days after

39%

27 / 69 earnings

Positive

+47.8%

Q1 2016

Best reaction

-23.2%

Q3 2018

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+11.7%+29.0%+31.1%
Q4 2025-9.6%-10.8%-20.5%
Q3 2025+3.6%-2.4%-12.8%
Q2 2025-6.4%-1.2%-13.3%
Q1 2025+1.9%+9.6%+17.8%
Q4 2024-6.3%-7.5%-16.1%
Q3 2024-7.1%-11.3%-14.8%
Q2 2024+3.4%-5.2%+4.1%
Q1 2024-9.9%-6.0%+4.1%
Q4 2023-5.7%-0.1%+8.3%
Q3 2023+12.3%+16.7%+26.0%
Q2 2023-4.4%+1.2%-7.6%
Q1 2023-9.0%+0.2%+33.2%
Q4 2022+16.8%+18.8%+11.0%
Q3 2022-2.4%+3.5%+29.0%
Q2 2022+1.4%+5.7%-14.9%
Q1 2022+10.7%+6.1%+20.9%
Q4 2021+7.4%+8.2%-2.0%
Q3 2021-0.1%-1.7%+29.0%
Q2 2021+6.7%+15.7%+16.8%
Q1 2021-1.6%-4.4%-8.2%
Q4 2020-5.6%-9.0%-12.4%
Q3 2020-7.1%-8.4%+5.4%
Q2 2020+10.3%+12.3%+21.5%
Q1 2020-5.0%-11.7%-8.4%
Q4 2019-3.6%-4.6%-10.7%
Q3 2019-1.7%+3.6%+17.0%
Q2 2019-9.1%-12.1%-6.1%
Q1 2019-3.2%+1.9%+1.2%
Q4 2018+14.4%+21.5%+16.6%
Q3 2018-23.2%-32.8%-22.8%
Q2 2018+13.3%+20.0%+48.1%
Q1 2018+9.4%+7.8%+34.2%
Q4 2017+3.2%-6.5%-10.7%
Q3 2017-12.6%-16.0%-19.4%
Q2 2017+4.2%-1.5%-11.7%
Q1 2017-22.4%-23.4%-15.9%
Q4 2016+13.7%+15.4%+31.0%
Q3 2016-3.7%+10.8%+28.7%
Q2 2016+7.9%+29.0%+40.9%
Q1 2016+47.8%
Q4 2015-11.3%
Q3 2015-0.5%
Q2 2015-8.7%
Q1 2015-4.6%
Q4 2014+2.5%
Q3 2014+4.2%
Q2 2014-17.8%
Q1 2014+9.6%
Q4 2013-12.2%
Q3 2013-13.7%
Q2 2013-8.0%
Q1 2013+2.9%
Q4 2012+11.0%
Q3 2012-21.3%
Q2 2012-13.7%
Q1 2012-2.6%
Q4 2011+2.5%
Q3 2011-1.6%
Q2 2011-0.2%
Q1 2010-0.7%
Q1 2011-3.1%
Q4 2008-6.2%
Q4 2010-6.2%
Q3 2009+6.2%
Q3 2010+6.2%
Q2 2009-0.1%
Q4 2009-0.1%
Q2 2010-0.1%

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