Investing.com - AMD reported on Tuesday first-quarter earnings that matched analysts' forecasts and revenue that topped expectations, but the chipmaker warned of uncertain chip demand amid the ongoing Covid-19 crisis.
“We executed well in the first quarter, navigating the challenging environment to deliver 40 percent year-over-year revenue growth and significant gross margin expansion driven by our Ryzen and EPYC processors,” said Dr. Lisa Su, AMD president and CEO. “While we expect some uncertainty in the near-term demand environment, our financial foundation is solid and our strong product portfolio positions us well across a diverse set of resilient end markets."
AMD shares lost 3.9% in after-hours trade following the report.
AMD announced earnings per share of $0.18 on revenue of $1.79 billion. Analysts polled by Investing.com anticipated EPS of $0.18 on revenue of $1.78 billion. That compares to EPS of $0.06 on revenue of $1.27 billion in the same period a year before. AMD had reported EPS of $0.32 on revenue of $2.13 billion in the previous quarter.
Computing and Graphics, its largest segment, saw revenue grow 73% year on year to $1.44 billion, driven by Ryzen processor and Radeon product channel sales. But revenue slipped 13% quarter on quarter, due to lower graphics processor sales.
Looking ahead, the company guided second-quarter revenue of $1.85 billion, give or take $100 million, compared with consensus estimates for revenue of $1.89 billion.
"A shift in consumer behavior in the post-coronavirus world is helping AMD to sustain its growth momentum even in this downturn," Investing.com's Haris Anwar said. "Solid demand for gaming consoles, personal computers, and data centers is powering growth in both sales and profitability."
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