[The Exiled]

AMD Q4 earnings beat expectations, despite slowing PC sales

AMD reported fourth quarter earnings on Tuesday, beating Wall Street expectations for sales and profit, but guided analysts to a 10% decline in year-over-year sales in the current quarter. AMD reported earnings as many of its rival (1 - 2) chipmakers have stumbled in recent weeks, citing lower consumer demand for finished electronics and gluts of parts needed to make PCs and servers. The chipmaker attributed its beat to strong growth in its embedded and data center businesses, and said that its client revenue, or chips for PCs and laptops, and its gaming segment were down. AMD’s data center segment rose 42% year-over-year to $1.7 billion. Its embedded segment grew 1,868%, AMD said, because of sales from its purchase of Xilinx. But its client group, which includes sales from PC processors, was down 51% year-over-year because of a slumping PC market, AMD said. It added that its customers have too much inventory of its chips, a theme other semiconductor companies have mentioned in recent weeks. The global PC market is in a protracted slowdown, according to estimates.

• Revenue: $5.6 billion versus $5.5 billion expected
  
• Adjusted EPS: $0.69 versus $0.67 expected
  
• Data Center: $1.7 billion versus $1.6 billion expected
  
• Client: $903 million versus $995 million expected
  
• Gaming: $1.6 billion versus $1.5 billion expected
  
• Embedded: $1.4 billion versus $1.3 billion expected

Izvor: AMD