Needing no introduction, AMD this afternoon is the second of the PC chip titans to announce their earnings for the quarter and for the total 2020 calendar yr. The firm has continued to experience excessive on the success of its Zen architecture-based CPUs and APUs, in addition to the current launch of the Playstation 5 and Xbox Series X|S. As a outcome, these merchandise have propelled AMD to a different report quarter and one other report yr, as the corporate continues to hit income information whereas recording an more and more tidy revenue within the course of.
For the fourth quarter of 2020, AMD reported $3.24B in income, a 53% bounce over the identical quarter a yr in the past. As a outcome, This fall’2020 was (as soon as once more) AMD’s greatest quarter ever, constructed on the again of sturdy gross sales throughout just about the complete firm. And AMD’s gross margin has held regular at 45%, the identical as This fall’19.
Meanwhile, in what was already a robust quarter for the corporate, AMD additionally realized some one-off positive aspects associated to an earnings tax valuation allowance, which added one other $1.3B to AMD’s web earnings. As a outcome, the corporate booked a large revenue of $1.78B for the quarter alone. Otherwise, excluding that one-off achieve and taking a look at AMD’s non-GAAP outcomes, the corporate nonetheless booked 66% extra in web earnings in This fall’20 than they did the year-ago quarter. So not solely is AMD pulling in report revenues for the quarter, however that’s translating into a lot greater earnings as nicely.
| AMD This fall 2020 Financial Results (GAAP) | |||||||
| This fall’2020 | This fall’2019 | Q3’2020 | Y/Y | Q/Q | |||
| Revenue | $3.2B | $2.1B | $2.8B | +53% | +16% | ||
| Gross Margin | 45% | 45% | 44% | Flat | +1pp | ||
| Operating Income | $570M | $348M | $449M | +64% | +27% | ||
| Net Income | $1781M* | $170M | $390M | +948% | +357% | ||
| Earnings Per Share | $1.45 | $0.15 | $0.32 | +867% | +353% | ||
As for AMD’s full-year earnings, the corporate has been having sturdy quarters all yr now, so unsurprisingly that is mirrored of their full-year outcomes. Overall, for 2020 AMD booked $9.76B in income, which was a rise of 45% over 2019, and as soon as once more a report for the corporate. Amusingly, AMD’s gross margin for the complete yr was additionally 45%, which is one proportion level greater than 2019’s.
Like AMD’s quarterly outcomes, their full-year outcomes are additionally distorted a bit by their one-off tax profit. By GAAP requirements AMD booked an unimaginable $2.49B in web earnings for 2020. However eradicating that tax profit brings their web earnings all the way down to round $1.4B – or a non-GAAP $1.56B – which continues to be an enormous year-over-year enhance in profitability for the corporate, greater than doubling their 2019 non-GAAP efficiency. Despite AMD’s gross margin solely bettering by a single level, AMD is more and more having fun with the advantages of scale, with record-breaking product shipments turning into earnings for the corporate.
| AMD FY 2020 Financial Results (GAAP) | ||||||
| FY 2020 | FY 2019 | FY 2018 | Y/Y | |||
| Revenue | $9.8B | $6.7B | $6.5B | +45% | ||
| Gross Margin | 45% | 43% | 38% | +2pp | ||
| Operating Income | $1369M | $631M | $451M | +117% | ||
| Net Income | $2490M* | $341M | $337M | +630% | ||
| Earnings Per Share | $2.06 | $0.30 | $0.32 | +587% | ||
Moving on to particular person reporting segments, 2020 marks an attention-grabbing yr for AMD given the corporate’s uncommon break up into two main segments. Normally AMD’s Compute and Graphics section is by far and away the flag bearer for the corporate’s earnings, however the launch of the newest era of consoles, mixed with ever-improving EPYC gross sales, implies that the Enterprise, Embedded and Semi-Custom section additionally noticed a really sturdy quarter.
For This fall’20, AMD’s Computing and Graphics section booked $1.96B in income, an 18%…
