=Advanced Micro (AMD) reported earnings on Tue 24 Oct 2017 (a/h)

Advanced Micro beats by $0.02, beats on revs; guides Q4 rev midpoint above consensus

• Reports Q3 (Sep) earnings of $0.10 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.08; revenues rose 25.7% year/year to $1.64 bln vs the $1.51 bln Capital IQ Consensus. 
  • Computing and Graphics revenue was $819 million, up 74% y/y and 24% q/q. The y/y increase was due to strong sales of Radeon graphics and Ryzen desktop processors . The q/q increase was primarily due to strong sales of Radeon graphics processors. Client average selling price (ASP) increased significantly y/y due to an increase in desktop processor ASP, driven by sales of Ryzen processors. Client processor ASP was lower q/q primarily due to mobile processor ASP. GPU ASP increased significantly y/y and q/q driven by a richer product mix.
  • Enterprise, Embedded and Semi-Custom revenue was $824 million, ~flat y/y and up 46% q/q. Quarterly revenue was primarily driven by lower semi-custom SoC revenue, mostly offset by IP related revenue and EPYCTM processor revenue.
• Co issues upside guidance for Q4, sees Q4 revs down 12-18% Q/Q (+26% Y/Y) to ~$1.34-1.45 bln vs. $1.34 bln Capital IQ Consensus. Non-GAAP gross margin to be ~35%.