AMD Earnings Report Q1 2023

AMD Chairman and CEO Dr. Lisa Su, delivers a keynote address at CES 2023 at The Venetian Las Vegas on January 4, 2023 in Las Vegas, Nevada.

David Becker | Getty Images

AMD reported first-quarter results on Tuesday, which showed sales declined 9% on a yearly basis. While earnings and revenue beat Wall Street expectations, AMD’s guidance for the current quarter was low and shares fell over 3% in extended trading.

Here’s how the company compared to Refinitiv consensus estimates for the quarter ended December:

  • EPS: $0.60 per share adjusted versus $0.56 per share expected
  • Revenue: $5.35 billion versus adjusted $5.3 billion

AMD said it expects revenue of about $5.3 billion in the current quarter versus expectations of $5.48 billion. However, in a statement, AMD CEO Lisa Su signaled that the company “sees growth in the second half of the year as PC and server markets strengthen.”

The company’s net loss was $139 million, or a loss of nine cents per share, compared to net income of $786 million, or $0.56 per share, in the same quarter last year.

The biggest decline was in AMD’s customer group, which includes PC processor sales. AMD reported $739 million in revenue in this category, down 65% from $2.1 billion in revenue for the same period last year.

AMD’s report comes as the PC industry is in a deep slump, with shipments down 30% in the first quarter, according to IDC.

AMD’s data center segment grew a little over the year to $1.295 billion from $1.293 billion a year earlier. AMD management also said the category is expected to grow in the current quarter.

AMD’s gaming segment, which includes graphics processors for PCs as well as chips for consoles like the Sony Playstation 5, reported revenue of $1.76 billion, down slightly from last year’s $1.88 billion mark Year.

While the results showed a lack of growth, they came at a difficult time for chipmakers. Last week, Intel, AMD’s main competitor in the PC and server chip market, reported that its overall sales fell 36%.

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