4 weeks after Superior Micro Units issued a gross sales warning, all eyes are on the quarterly gross sales steering the chip provider is predicted to share in its newest earnings report.
Amongst analysts polled by FactSet, the consensus is for AMD to report third-quarter revenue of $5.65 billion (up 31% yearly, with an help from AMD’s acquisition of Xilinx) and non-GAAP EPS of $0.69 (down 6%). The highest-line determine is near AMD’s preliminary forecast (issued on Oct. 6) for Q3 income of roughly $5.6 billion.
For the fourth quarter, AMD’s income consensus stands at $5.95 billion (up 23%), and its EPS consensus stands at $0.80. The corporate sometimes shares quarterly and full-year gross sales and gross-margin steering in its earnings studies.
Eric Jhonsa, Actual Cash’s tech columnist, will probably be live-blogging AMD’s report, which is predicted shortly after the shut on Tuesday, together with an earnings call anticipated to characteristic CEO Lisa Su and CFO Devinder Kumar that’s scheduled for five P.M. Japanese Time.
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5:26 PM ET: Relating to GM headwinds, Kumar notes that Shopper gross sales weak spot is a margin headwind, as is the expansion of some non-CPU Information Heart merchandise and investments to develop provide.
5:24 PM ET: A query about 2023 Information Heart progress expectations.
Su says it is early to difficulty exact steering for 2023. Notes all of AMD’s segments face some macro pressures, whereas including the North American cloud market may be very resilient. Says that whereas there could possibly be some near-term “optimization” work by NA cloud purchasers, demand will develop in 2023.
Su provides that China cloud demand is weak, and that AMD is not anticipating a restoration. Notes enterprise demand is seeing some choppiness resulting from corporations pushing out shopping for choices, however reiterates AMD is assured it will possibly take share right here.
5:21 PM ET: The Q&A session has began. First query is about when PC CPU gross sales will backside.
Su notes the This fall steering assumes PC CPU gross sales will probably be down once more, and says this will probably be a major step in the direction of clearing stock.
A follow-up query about server CPU provide constraints. Su says AMD has made progress in the direction of eliminating provide constraints, and that it expects Genoa will not be supply-constrained when it formally launches.
5:19 PM ET: Kumar says AMD will take a number of near-term cost-cutting measures, whereas persevering with to spend money on long-term precedence areas.
5:18 PM ET: Relating to inventories, Kumar says the Q/Q progress was primarily pushed by Shopper merchandise (PC CPUs) and the ramp of latest merchandise.
For the This fall gross sales information, he says Y/Y progress is pushed by Information Heart and Embedded, partially offset by declines in Shopper and Gaming. Likewise, Information Heart and Embedded gross sales are anticipated to be up Q/Q, whereas Shopper and Gaming are anticipated to be down.
5:15 PM ET: Kumar is recapping AMD’s Q3 monetary efficiency. Notes the highest and bottom-line impacts of soppy Shopper demand amid massive buyer stock corrections.
5:12 PM ET: CFO Devinder Kumar is now speaking. Shares are actually up 3.5% AH.
5:11 PM ET: Q3 PC CPU gross sales are stated to have trailed end-user consumption, with Su including desktop sell-through elevated Q/Q.
Recreation-console SoC gross sales hit a document, and console demand is alleged to nonetheless be sturdy. Gaming GPU gross sales had been as soon as extra damage by channel stock reductions forward of the pending launch of AMD’s RDNA 3 gaming GPU line.
Embedded (Xilinx) demand is alleged to stay sturdy throughout end-markets. Communications embedded gross sales are stated to have hit a document. Su says “deeper engagements” with embedded purchasers that contain each AMD and Xilinx merchandise are driving new design wins.
5:07 PM ET: Su notes AMD’s Epyc lineup will broaden in 2023 with the launch of its Bergamo and Siena strains. The previous targets cloud giants, and the latter targets telco/edge workloads.
5:05 PM ET: Su reiterates Q3 gross sales had been damage by weaker PC demand and associated stock cuts. Notes server CPU gross sales hit a document for the tenth straight quarter, and that cloud server CPU gross sales greater than doubled Y/Y. Greater than 70 Epyc-powered cloud computing cases launched.
OEM server CPU income fell Q/Q resulting from match-set provide points and a few enterprises slowing orders. Server GPU gross sales had been down considerably Y/Y, resulting from massive year-ago gross sales associated to the Frontier supercomputer. FPGA and networking information heart product gross sales hit information, as did Pensando gross sales.
5:03 PM ET: CEO Lisa Su is speaking.
5:01 PM ET: The decision is beginning. AMD’s inventory is up 3% AH going into it.
4:58 PM ET: AMD’s earnings name ought to kick off shortly. Here’s the webcast link, for these seeking to tune in.
4:57 PM ET: AMD’s personal inventories totaled $3.37B on the finish of Q3, up from $2.65B on the finish of Q2. AMD had been making massive buy commitments to suppliers in current quarters (notably TSMC), albeit to not the identical diploma as Nvidia.
4:53 PM ET: A small correction: AMD’s unique Q3 steering (issued in its Q2 report) was shared in early August, relatively than July.
4:51 PM ET: AMD spent $617M on inventory buybacks in Q3, after having spent $920M in Q2.
Q3 free money circulation was $842M (up from $764M a 12 months in the past), and AMD exited the quarter with $5.6B in money/equivalents and $2.5B in debt.
4:48 PM ET: Of word: AMD’s Q3 non-GAAP working bills got here in at $1.52B, up 47% Y/Y (boosted by each the Xilinx deal and natural investments) however under its unique steering of ~$1.64B.
For This fall, AMD is guiding for opex of ~$1.55B
4:41 PM ET: Q3 slides for the Gaming and Embedded segments. With Xilinx having reported income of $936M in its September 2021 quarter, Q3 Embedded income of $1.3B suggests Xilinx’s gross sales grew strongly Y/Y.
It is value noting Embedded additionally consists of AMD’s gross sales of embedded CPUs. However on the flip aspect, it does not embrace Xilinx’s information heart FPGA gross sales, that are counted by the Information Heart section.
4:36 PM ET: AMD’s Q3 slides for its Information Heart and Shopper segments. Shopper posted a small op. loss as gross sales tumbled, whereas Information Heart noticed op. earnings develop 64% amid 45% income progress.
Additionally: AMD says it made preliminary shipments of its next-gen Epyc CPUs (Genoa), which will probably be formally introduced on 11/10, and that shipments of Pensando DPUs and Xilinx information heart FPGAs “ramped considerably.”
4:33 PM ET: AMD stays reasonably increased: Shares are up 1.3% to $60.44.
4:31 PM ET: Additionally in-line with the preannouncement: AMD’s Q3 non-GAAP gross margin (damage by $160M value of costs) was 50%, down from 54% in Q2 and up from 48.5% a 12 months in the past.
The corporate is guiding for a This fall non-GAAP GM of 51%. The total-year GM steering has been lowered by 2 factors from July ranges to 52%.
4:28 PM ET: According to the Q3 preannouncement, Information Heart income totaled $1.6B (+45% Y/Y, boosted by sturdy cloud demand and share beneficial properties).
Shopper (PC CPU) income totaled $1B (down 40% amid weak PC demand and huge stock reductions). Gaming income totaled $1.6B (+14%, console SoC gross sales up, gaming GPU gross sales down). And Embedded income (largely Xilinx) totaled $1.3B.
4:24 PM ET: Here’s the Q3 report, for these .
4:22 PM ET: Additionally maybe serving to: AMD says it expects its Information Heart (server CPU) and embedded (Xilinx) segments to develop each Q/Q and Y/Y in This fall.
4:20 PM ET: AMD’s inventory is now up 2.8% AH. Although the This fall gross sales information was mild, casual expectations had been clearly under consensus.
4:18 PM ET: The total-year income information, which takes into consideration Q3 outcomes and This fall steering, has been lower to $23.5B (+/- $300M) from July ranges of $26.3B.
4:17 PM ET: Shares are down 0.8% AH for now.
4:16 PM ET: Outcomes are out. Q3 income of $5.57B is near a preliminary forecast of ~$5.6B. Non-GAAP EPS of $0.67 is barely under a $0.69 consensus.
AMD guides for This fall income of $5.5B, plus or minus $300M. That is under a $5.95B consensus.
4:10 PM ET: Nonetheless ready for the Q3 report to return out.
4:00 PM ET: AMD closed down 0.7% to $59.66. The Q3 report must be out quickly.
3:57 PM ET: Expectations seem subdued: AMD’s inventory is down 58% YTD going into its Q3 report. With PC gross sales recognized to be weak, AMD’s steering/commentary for server CPU demand will probably get numerous consideration.
3:52 PM ET: The FactSet consensus is for AMD to report Q3 income of $5.65B and non-GAAP EPS of $0.69. However with AMD having already warned on Oct. 6, the corporate’s This fall steering is certain to have a much bigger influence on how its inventory strikes post-earnings. The This fall gross sales consensus is at the moment at $5.95B.
3:50 PM ET: Hello, that is Eric Jhonsa. I’ll be live-blogging AMD’s Q3 report and name.
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