AMD's fourth-quarter revenue of $6.168 billion increased 10% year-on-year, and its revenue outlook for the next quarter fell short of expectations.

Morning news on January 31, Beijing time, AMD today announced the company’s fourth quarter and full-year financial results for fiscal year 2023.

The report shows that AMD’s fourth-quarter revenue was US$6.168 billion, an increase of 10% compared with US$5.599 billion in the same period last year, and an increase of 6% compared with US$5.800 billion in the previous quarter; net profit was US$667 million, a significant increase of 3076% compared with US$21 million in the same period last year, and an increase of 123% compared with US$299 million in the previous quarter; adjusted net profit not in accordance with US GAAP was US$1.249 billion, An increase of 12% compared to US$1.113 billion in the same period last year and an increase of 10% compared with US$1.135 billion in the previous quarter.

AMD's fourth-quarter revenue and adjusted earnings per share both beat Wall Street analysts' expectations, and full-year fiscal 2023 revenue and adjusted earnings per share also beat expectations. In terms of performance outlook, AMD's revenue outlook for the first quarter of fiscal 2024 failed to meet analysts' expectations. After the earnings report was released, AMD's stock price fell sharply by more than 6% after hours.

Fourth Quarter Results Summary:

For the period ended December 31, 2023 In the financial quarter, AMD's net profit was US$667 million, a significant increase of 3076% compared with US$21 million in the same period last year, and an increase of 123% compared with US$299 million in the previous quarter. AMD's fourth-quarter diluted earnings per share were $0.41, a significant increase of 4000% from $0.01 in the same period last year and an increase of 128% from $0.18 in the previous quarter.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD’s adjusted net profit in the fourth quarter was US$1.249 billion, an increase of 12% compared with US$1.113 billion in the same period last year. Increased 10% compared to $1.135 billion in the prior quarter; Adjusted earnings per share were $0.77, increased 12% compared to adjusted earnings per share of $0.69 in the prior year period, compared to $0.70 in the prior quarter Growth of 10%, this performance exceeded Wall Street analysts' previous expectations. According to data provided by Yahoo Finance Channel, 31 analysts had expected AMD to earn $0.71 per share in the fourth quarter.

AMD’s fourth quarter revenue was US$6.168 billion, an increase of 10% compared with US$5.599 billion in the same period last year, and an increase of 6% compared with US$5.800 billion in the previous quarter. This performance also exceeded analysts had expected. According to data provided by Yahoo Finance, 32 analysts on average expected AMD's fourth-quarter revenue to reach $5.64 billion.

AMD’s operating profit in the fourth quarter was US$342 million, compared with an operating loss of US$149 million in the same period last year, equivalent to a year-on-year increase of 330%; operating profit in the previous quarter was US$224 million, an increase of 53% compared with the same period last year. %. AMD's fourth-quarter operating margin was 6%, up 9 percentage points from -3% a year ago and up 2 percentage points from 4% in the previous quarter.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD’s adjusted operating profit in the fourth quarter was $1.412 billion, an increase of 12% from operating profit of $1.262 billion in the same period last year. %, an increase of 11% compared with US$1.276 billion in the previous quarter. Excluding certain one-time items (non-GAAP), AMD's adjusted operating margin in the fourth quarter was 23%, which was unchanged from 23% in the same period last year and compared with 22% in the previous quarter. increased by 1 percentage point.

Revenue and operating profit by business segment:

- AMD Data Center segment revenue in the fourth quarter was $2.282 billion, an increase of 38% from $1.655 billion in the same period last year. %, an increase of 43% compared with US$1.598 billion in the previous quarter; operating profit was US$666 million, an increase compared with US$444 million in the same period last year, and also higher than US$306 million in the previous quarter.

- Customer segment revenue in the fourth quarter was $1.461 billion, an increase of 62% compared to $903 million in the same period last year, and a slight increase compared with $1.453 billion in the previous quarter; Operations Profit was $55 million, compared with an operating loss of $152 million a year earlier and an operating profit of $140 million in the previous quarter.

- The fourth quarter revenue of the gaming segment was US$1.368 billion, a decrease of 17% compared with US$1.644 billion in the same period last year, and a decrease of 9% compared with US$1.506 billion in the previous quarter; operating profit was US$224 million, compared with US$266 million in the same period last year and US$208 million in the previous quarter.

- Embedded Products segment fourth quarter revenue was $1.057 billion, down 24% from $1.397 billion in the same period last year and down 15% from $1.243 billion in the previous quarter; Operations Profit was $461 million, compared with $699 million in the same period last year and $612 million in the previous quarter.

- All other segments had an operating loss of $1.064 billion in the fourth quarter, compared with an operating loss of $1.406 billion a year earlier and an operating loss of $1.042 billion in the prior quarter.

AMD’s fourth-quarter operating expenses were $2.575 billion, essentially flat from $2.557 billion a year earlier and up 2% from $2.533 billion in the previous quarter. Among them, AMD's research and development expenditures in the fourth quarter were US$1.511 billion, compared with US$1.366 billion in the same period last year, and US$1.507 billion in the previous quarter; marketing, general and administrative expenses were US$644 million, compared with US$590 million in the same period last year. Last quarter was $576 million; M&A-related intangible asset amortization expenses were $420 million, compared with $601 million in the same period last year, and $450 million in the previous quarter; licensing income was $6 million, compared with $500 million in the same period last year million, compared with $10 million in the previous quarter.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD’s adjusted operating expenses in the fourth quarter were US$1.727 billion, an increase of 8% compared with US$1.602 billion in the same period last year. An increase of 2% compared to the previous quarter's $1.697 billion.

AMD’s fourth-quarter gross profit was $2.911 billion, an increase of 21% from $2.403 billion in the same period last year and an increase of 6% from $2.747 billion in the previous quarter. Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted gross profit in the fourth quarter was US$3.133 billion, an increase of 10% compared with US$2.859 billion in the same period last year, and an increase of 10% compared with US$2.859 billion in the previous quarter. billion, an increase of 6%.

AMD’s fourth-quarter gross margin was 47%, up 4 percentage points from 43% in the same period a year ago and unchanged from 47% in the previous quarter. Excluding certain one-time items (non-GAAP), AMD's fourth-quarter adjusted gross margin was 51%, which was flat compared to the year-ago quarter and 51% in the previous quarter.

Full-year performance summary:

AMD's full-year revenue was US$22.68 billion, a decrease of 4% compared with US$23.601 billion in fiscal year 2022; gross profit was US$10.460 billion, compared with US$23.601 billion in fiscal 2022 A decrease of 1% compared to US$10.603 billion in fiscal year; gross profit margin was 46%, an increase of 1 percentage point compared with 45% in fiscal 2022; operating expenses were US$10.093 billion, an increase compared with US$9.441 billion in fiscal 2022 7%; operating profit was US$401 million, a decrease of 68% compared with US$1.264 billion in fiscal 2022; operating profit margin was 2%, a decrease of 3 percentage points compared with 5% in fiscal 2022; net profit was US$854 million, a decrease of 35% compared with the net profit of US$1.320 billion in fiscal year 2022; diluted earnings per share was US$0.53, a decrease of 37% compared with the diluted earnings per share of US$0.84 in fiscal year 2022.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted gross profit for the full year was $11.436 billion, a decrease of 7% compared to $12.273 billion in fiscal 2022; The adjusted gross profit margin was 50%, a decrease of 2 percentage points compared with 52% in fiscal 2022; adjusted operating expenses were US$6.616 billion, an increase of 10% compared with US$6.030 billion in fiscal 2022; adjusted operating profit was Adjusted net income was $4.854 billion, down 23% from $6.345 billion in fiscal 2022; adjusted net income was $4.302 billion, down 22% from $5.504 billion in fiscal 2022; adjusted Adjusted earnings per share were $2.65, a decrease of 24% compared to adjusted earnings per share of $3.50 in fiscal 2022.

AMD's full-year revenue exceeded analysts' expectations, and its adjusted earnings per share also beat expectations. According to data provided by Yahoo Finance Channel, 43 analysts had previously expected AMD's full-year revenue to reach US$20.89 billion on average, and 38 analysts had previously expected AMD's full-year adjusted earnings per share to reach US$2.45 on average.

Performance Outlook:

AMD expects that the company’s revenue in the first quarter of fiscal year 2024 will reach approximately US$5.4 billion, plus or minus US$300 million. The performance outlook failed to meet analysts' expectations. Analysts on average currently expect AMD to post first-quarter revenue of $5.73 billion, according to data provided by financial market data information and infrastructure provider LESG (formerly known as Refinitiv). In addition, AMD also expects gross profit margin in the first quarter of fiscal 2024 to be approximately 52% on a non-GAAP basis.

AMD said that from a quarter-on-quarter basis, it expects data center business revenue to be flat in the first quarter of fiscal 2024, while sales of customers, embedded products and gaming businesses are expected to decline quarter-on-quarter, with half of them expected to decline quarter-on-quarter. Customization revenue is expected to see a significant double-digit decline.

Stock price changes:

On the same day, AMD's stock price fell by $5.77 in regular trading on Nasdaq, closing at $172.06, a decrease of 3.24%. In subsequent after-hours trading as of 5:43 pm ET on Tuesday (6:43 am on Wednesday, Beijing time), AMD shares fell another $10.87 to $161.19, a drop of 6.32%. Over the past 52 weeks, AMD's highest price was $184.92 and its lowest price was $72.03.

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