4/30/19 Q1 CC Solid! AMD 27.69 to 27.63



AMD was down to 26.94 at one point, then recovered just before the bell. Q1 was good, but right now the most important contributing factor to AMD’s share price is H2 2019 guidance anyway. The highlights:

Small beat in revenue, $1.27B vs $1.25B guided. Good.

Earning per share (non-GAAP) is $0.06, vs 0.05 expected. Good.

Gross Margin 41%, as guided. Good.

Datacenter revenue (CPU and GPU combined) is mid double digits. Great.

Rome already shipping to hyperscalers now, with Q3 launch to OEMs. Great.

Consoles will return to growth in 2020. Great.

Navi, Ryzen launch in Q3. As expected.

Ryzen mobile with ever increasing design wins, great.

Debt paid down significantly, with nothing due until 2022. Sweet.

Q2 guidance $1.52B. Not bad.

Whole year guidance same, high single digit, with GM higher than 41%. Great. This guaranteed H2 2019 revenue to be $4.2B, with GM in the 43-44%. Combined that with CAPEX at 29%, earnings should be improving rapidly.

Best part, AMD does not blame China!!

By 2020, with all the 7 nm products fully launched, new consoles arriving, and streaming business growing, full year revenue could get close to $10B. Things are looking good.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s