AMD shares see boost after Q3 earnings

Jared Blikre, Yahoo Finance, goes in depth with the chipmaker's earnings.

Video transcript

ADAM SHAPIRO: All right, we're watching shares of Advanced Micro Devices trade up after the bell. We got their earnings. And Jared Blikre, what did they tell us?

JARED BLIKRE: That's right. Stock's up about 1%, 2%. Nice beat on array. So let's get to the numbers. Third quarter for AMD, the adjusted EPS coming in at $0.73, up $0.41 year over year, beating the estimate of $0.67 by $0.07. Revenue also a beat, coming in at $4.31 billion, up 54% year over year. Estimate was for $4.12 billion.

Their computer graphics revenue, that was $2.4 billion, a nice beat there. And also enterprise embedded and semi-custom revenue, that's up 20% quarter over quarter to $1.92 billion, also a beat there. Adjusted gross margin coming exactly in line at 48%, although that is up 44% itself year over year, and their capital expenditures coming in at $85 million.

Now for their fourth quarter forecasts, seeing revenue of $4.4 to $4.6 billion. That beats the estimate of $4.25 billion. Seeing adjusted gross margin of about 49 and 1/2%, estimate for just a tad higher. We'll call it in line. And then for the year forecast, they're seeing revenue of about an increase of about 65%, whereas, previously, they saw 60%. And they are seeing adjusted gross margin about 48%, slightly beating the estimate there.

Want to read some highlights from the report, saying computer and graphics segment revenue was to $2.4 billion, up 44% year over year, 7% sequentially. The year over year and quarter over quarter increases were driven by higher [INAUDIBLE] Radeon, and AMD instinct processor sales. Also looking at the client processor average selling price, that grew year over year and quarter over quarter, driven by a richer mix of some of their processor sales.

And then, finally, GPU ASP grew year over year and quarter over quarter, driven by high end Radeon graphics product sales and AMD instinct data center GPU sales. So, again, the stock up slightly in after hours trading after a nice beat and a raised quarter for AMD.