AMD announces 2021Q4 and full year earnings: Revenue beats expectations, may break $20 billion this year

2022-05-14 0 By

AMD reported fourth-quarter 2021 revenue of $4.826 billion, a 48% year-over-year increase and a 12% sequential increase that beat analysts’ expectations.Gross margin improved to 50%, an increase of more than five percentage points year-over-year and approximately two percentage points quarter-over-quarter, driven primarily by a richer product portfolio.Net income was $974m, down 45 per cent year on year and up 6 per cent quarter on quarter.Enterprise, Embedded and Semi-custom division revenue was $2.242 billion, up 75% year-over-year and 17% quarter-over-quarter, driven by increased sales of EPYC server processors and semi-custom soCs.Computing and graphics division revenue was $2.584 billion, up 32 percent year-over-year and 8 percent sequentially, driven by Ryzen processors and Radeon graphics cards.The difference was that Ryzen processors’ average selling price (ASP) increased both year-over-year and quarter-over-quarter, while Radeon graphics cards’ average selling price declined quarter-over-quarter due to a change in product line mix.AMD reported revenue of $16.4 billion in 2021, up 68% from 2020.Gross margin was 48%, up three percentage points from 2020, driven by EPYC, Ryzen and Radeon.Net income was $3.2bn, up from $2.5bn last year, including a $1.3bn income tax benefit recorded in the fourth quarter of 2020.AMD also has operating cash of $3.5 billion, up from $1.1 billion last year, which should help support future revenue growth.AMD expects revenue to continue to climb to $5 billion in the first quarter of 2022, up 45% year-over-year and 4% quarter-over-quarter.Meanwhile, full-year 2022 revenue is expected to be $21.5 billion, up 31% from a year earlier and surpassing analysts’ previous forecast of $19.3 billion.