NASDAQ$AMD

Advanced Micro Devices Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

AMD's third quarter results were below expectations due to the softening PC market and inventory reduction actions, but Data Center, Gaming, and Embedded segments grew significantly year-over-year.

AMD reported Q3 2022 revenue of $5.6 billion, a 29% increase year-over-year. The company experienced a GAAP operating loss of $64 million, but a non-GAAP operating income of $1.3 billion. Growth was driven by the Data Center, Gaming, and Embedded segments, while the Client segment faced challenges.

  • Revenue increased 29% year-over-year, driven by growth in Data Center, Gaming, and Embedded segments.
  • GAAP gross margin was 42%, while non-GAAP gross margin was 50%, an increase of 2 percentage points year-over-year.
  • GAAP operating loss was $64 million, while non-GAAP operating income was $1.3 billion.
  • Diluted earnings per share was $0.04, and non-GAAP diluted earnings per share was $0.67.

Headline financials

Total Revenue

$5.57B

Previous: $4.31B+29.0%
EPS (adj)

$0.67

Previous: $0.73-8.2%
Gross Margin

42.0%

No prior period
Operating Margin

-1.0%

No prior period
Capital Expenditures

-$326M

Previous: -$215M-51.6%
Free Cash Flow

-$260M

Previous: $708M-136.7%
Net Income

$66M

Previous: $923M-92.8%
Operating Income

-$64M

Previous: $948M-106.8%
Gross Profit

$2.35B

Previous: $2.09B+12.8%
Cash & Equivalents

$3.4B

Previous: $2.44B+39.3%
Total Assets

$67.8B

Previous: $11.2B+508.0%
Stock-Based Comp

$275M

Previous: $99M+177.8%

Revenue & EPS history

AMD · Revenue · Quarterly

$5.57B

Q3 2022+29%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

AMD · $5.57B total across 4 segments · Q3 2022

  • Gaming
    $1.63B
  • Data Center
    $1.61B
  • Embedded
    $1.3B
  • Client
    $1.02B

Forward guidance

For the fourth quarter of 2022, AMD expects revenue to be approximately $5.5 billion, plus or minus $300 million, an increase of approximately 14% year-over-year and flat sequentially. AMD expects non-GAAP gross margin to be approximately 51% in the fourth quarter of 2022.

Tailwinds

  • Embedded and Data Center segments are expected to grow year-over-year.
  • Embedded and Data Center segments are expected to grow sequentially.
  • AMD expects revenue to be approximately $5.5 billion, plus or minus $300 million.
  • AMD expects non-GAAP gross margin to be approximately 51%.

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 2022

Historical avgQ3 2022

-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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