AMD exceeded Wall Street estimates for Q1 2020, increasing revenue by 40 percent and improving its profit margins. The company’s revenue for the quarter was $1.79 billion, over half a billion dollars more than Q1 2019’s revenue of $1.27 billion. While AMD expects growth over the remainder of the year, it has lowered its expectations due to the current global health crisis.
AMD reported a profit of $162 million in Q1 2020, which equates to $0.14 per share. In Q1 2019, AMD made a much lower profit of $16 million or $0.01 per share. Nasdaq points out that excluding items, AMD’s adjusted profit for Q1 2020 was $222 million or $0.18 per share. That’s up when compared to Q1 2019’s $62 million or $0.06 per share within the same category. AMD’s gross margin increased from 41 percent last year to 46 percent in the recent quarter. AMD states that its revenue growth is driven largely by its computing and graphics segments.
President and CEO of AMD, Lisa Su, stated, “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.”
AMD expects revenues of around $1.85 billion, plus or minus $100 million, in the second quarter of 2020. The company expects revenue growth between 20 and 30 percent for the entirety of 2020. That figure is lower than the 28 percent to 30 percent that AMD originally expected for 2020. Expectations for the year were lowered by AMD due to the current global health crisis.
In related news, Intel also released its revenue figures recently. Intel revenue was up 23 percent year on year. You can read more about Intel’s revenue figures here.