Morning news on February 5, Beijing time, AMD today announced the company’s fourth quarter and full-year financial reports for fiscal year 2024. The report shows that AMD’s fourth-quarter revenue was US$7.658 billion, an increase of 24% compared with US$6.168 billion in the same period last year, and an increase of 12% compared with US$6.819 billion in the previous quarter; net profit was US$482 million, a decrease compared with US$667 million in the same period last year. 28%, a decrease of 37% compared with US$771 million in the previous quarter; adjusted net profit not in accordance with U.S. GAAP was US$1.777 billion, an increase of 42% compared with US$1.249 billion in the same period last year, and an increase of 18% compared with US$1.504 billion in the previous quarter.

AMD's fourth-quarter revenue exceeded Wall Street analysts' expectations, and adjusted earnings per share were in line with expectations; its full-year fiscal 2024 revenue exceeded analysts' expectations, while adjusted earnings per share were slightly lower than expected. In terms of performance outlook, AMD's revenue outlook for the first quarter of fiscal 2025 exceeded analyst expectations.

At the same time, as the company's most important business unit, AMD's data center unit's fourth-quarter revenue failed to meet expectations. Affected by this, after the release of the financial report, AMD's stock price fell sharply by nearly 5% after hours, approaching its lowest price in 52 weeks.

Fourth quarter results summary:

In the quarter ending December 31, 2024, AMD's net profit was US$482 million, a decrease of 28% compared with US$6.67 in the same period last year, and a decrease of 37% compared with US$771 million in the previous quarter. AMD's fourth-quarter diluted earnings per share were $0.29, a decrease of 29% from $0.41 in the same period last year and a decrease of 38% from $0.47 in the previous quarter.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted net profit in the fourth quarter was US$1.777 billion, an increase of 42% from US$1.249 billion in the same period last year, and an increase of 42% from US$1.504 billion in the previous quarter. The US dollar increased by 18% compared to the previous quarter; adjusted earnings per share were US$1.09, an increase of 42% compared with US$0.77 in the same period last year, and an increase of 18% compared with US$0.92 in the previous quarter. This performance was in line with Wall Street analysts' previous expectations. According to data provided by Yahoo Finance Channel, 37 analysts had previously expected AMD's fourth-quarter earnings per share to reach $1.09 on average.

AMD's fourth-quarter revenue was US$7.658 billion, an increase of 24% compared with US$6.168 billion in the same period last year, and an increase of 12% compared with US$6.819 billion in the previous quarter. This performance exceeded analysts' previous expectations. According to data provided by Yahoo Finance Channel, 35 analysts on average expect AMD’s fourth-quarter revenue to reach $7.53 billion.

AMD's fourth-quarter operating profit was US$871 million, an increase of 155% compared with US$342 million in the same period last year, and an increase of 20% compared with US$724 million in the previous quarter. AMD's operating profit margin in the fourth quarter was 11%, an increase of 5 percentage points compared with 6% in the same period last year, and unchanged from 11% in the previous quarter.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted operating profit in the fourth quarter was US$2.026 billion, an increase of 43% compared with US$1.412 billion in the same period last year, and an increase of 18% compared with US$1.715 billion in the previous quarter. Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted operating profit margin in the fourth quarter was 26%, an increase of 3 percentage points compared with 23% in the same period last year, and an increase of 1 percentage point compared with 25% in the previous quarter.

Revenue and operating profit by business segment:

-AMD data center division's fourth-quarter revenue reached a record $3.859 billion, an increase of 69% compared with $2.282 billion in the same period last year, and an increase compared with $3.549 billion in the previous quarter; operating profit was $1.157 billion, an increase compared with $666 million in the same period last year, and higher than the $1.041 billion in the previous quarter. Still, the unit's revenue fell short of expectations. According to data provided by financial information provider FactSet, analysts had on average expected revenue of this segment to reach US$4.14 billion.

-Customer segment revenue in the fourth quarter was US$2.313 billion, an increase of 58% compared with US$1.461 billion in the same period last year, and an increase compared with US$1.881 billion in the previous quarter; operating profit was US$446 million, an increase compared with US$55 million in the same period last year and US$276 million in the previous quarter.

-The fourth quarter revenue of the gaming segment was US$563 million, a decrease of 59% compared with US$1.368 billion in the same period last year, and an increase compared with US$462 million in the previous quarter; operating profit was US$50 million, a significant decrease compared with US$224 million in the same period last year, but higher than US$12 million in the previous quarter.

-The revenue of the Embedded Products Division in the fourth quarter was US$923 million, a decrease of 13% compared with US$1.057 billion in the same period last year, and basically the same as US$927 million in the previous quarter; operating profit was US$362 million, a decrease compared with US$461 million in the same period last year and US$372 million in the previous quarter.

- Operating losses for all other segments in the fourth quarter were $1.144 billion, compared with operating losses of $1.064 billion a year ago and $977 million in the previous quarter.

AMD's operating expenses in the fourth quarter were US$3.032 billion, an increase of 17% compared with US$2.575 billion in the same period last year, and an increase of 12% compared with US$2.709 billion in the previous quarter. Among them, AMD's research and development expenditures in the fourth quarter were US$1.712 billion, compared with US$1.511 billion in the same period last year, and US$1.636 billion in the previous quarter; marketing, general and administrative expenses were US$792 million, compared with US$644 million in the same period last year, and US$792 million in the previous quarter. .21 billion US dollars; amortization expenses of M&A-related intangible assets were US$332 million, compared with US$420 million in the same period last year, and US$352 million in the previous quarter; licensing income was US$11 million, compared with US$6 million in the same period last year, and US$14 million in the previous quarter.

AMD's fourth-quarter operating expenses accounted for 39% of revenue, down from 42% in the same period last year and 40% in the previous quarter.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted operating expenses in the fourth quarter were US$2.125 billion, an increase of 23% compared with US$1.727 billion in the same period last year, and an increase of 9% compared with US$1.956 billion in the previous quarter; the proportion of revenue was 28%, which was the same as the same period last year and decreased compared with 29% in the previous quarter.

AMD's fourth-quarter gross profit was US$3.882 billion, an increase of 33% compared with US$2.911 billion in the same period last year, and an increase of 14% compared with US$3.419 billion in the previous quarter. Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted gross profit in the fourth quarter was US$4.140 billion, an increase of 32% compared with US$3.133 billion in the same period last year, and an increase of 13% compared with US$3.657 billion in the previous quarter.

AMD's gross profit margin in the fourth quarter was 51%, an increase of 4 percentage points compared with 47% in the same period last year, and an increase of 1 percentage point compared with 50% in the previous quarter. Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted gross profit margin in the fourth quarter was 54%, an increase of 3 percentage points from 51% in the same period last year and the same as the previous quarter.

Full year results summary:

AMD's full-year revenue was US$25.785 billion, an increase of 14% compared with US$22.680 billion in fiscal year 2023; gross profit was US$12.725 billion, compared with US$10.460 billion in fiscal year 2023 USD increased by 22% compared to USD; gross profit margin was 49%, increased by 3 percentage points compared with 46% in fiscal year 2023; operating expenses were US$10.873 billion, compared with US$10.093 billion in fiscal year 2023 An increase of 8% year-on-year; operating profit was US$1.900 billion, an increase of 374% compared with US$401 million in fiscal year 2023; operating profit margin was 7%, an increase of 5 percentage points compared with 2% in fiscal year 2023 Net profit was US$1.641 billion, an increase of 92% compared with US$854 million in fiscal 2023; diluted earnings per share was US$1.00, an increase of 89% compared with US$0.53 in fiscal 2023.

Excluding certain one-time items (not in accordance with U.S. GAAP), AMD's adjusted gross profit for the full year was US$13.759 billion, an increase of 20% compared with US$11.436 billion in fiscal 2023; the adjusted gross profit margin was 53%, an increase of 3 percentage points compared with 50% in fiscal 2023; adjusted operating expenses were US$7.669 billion, an increase of 20% from US$11.436 billion in fiscal 2023. .16 billion US dollars, an increase of 16%; adjusted operating profit was US$6.138 billion, an increase of 26% compared with US$4.854 billion in fiscal year 2023; adjusted net profit was US$5.420 billion, an increase of 26% compared with US$4.302 billion in fiscal year 2023; adjusted earnings per share was US$3.31, an increase of 25% compared with US$2.65 in fiscal year 2023.

AMD's full-year revenue exceeded analysts' expectations, while adjusted earnings per share were slightly lower than expected. According to data provided by Yahoo Finance Channel, 45 analysts had previously expected AMD's full-year revenue to reach US$25.65 billion on average, and 45 analysts had previously expected AMD's full-year adjusted earnings per share to reach US$3.32 on average.

Performance Outlook:

AMD predicts that the company's revenue in the first quarter of fiscal year 2025 will reach about US$7.1 billion, plus or minus US$300 million, a year-on-year increase of about 30% and a month-on-month decrease of about 7%. This performance outlook exceeds analyst expectations. According to data provided by Yahoo Finance Channel, analysts currently expect AMD's first-quarter revenue to reach $6.99 billion on average. In addition, AMD also predicts that the gross profit margin in the first quarter of fiscal year 2025 is expected to be about 54%, not calculated in accordance with U.S. GAAP.

In addition, in a conference call after the release of the financial report, AMD CEO Lisa Su said that the company believes that its "revenue and diluted earnings per share will achieve strong double-digit growth" in 2025.

Stock price changes:

On that day, AMD's stock price rose $5.23 in regular Nasdaq trading to close at $119.50, an increase of 4.58%. In the subsequent after-hours trading as of 5:13 pm Eastern Time on Tuesday (6:13 am on Wednesday, Beijing time), AMD's stock price fell sharply by US$5.95 to US$113.55, a decrease of 4.98%, approaching the lowest price in 52 weeks. In the past 52 weeks, AMD's highest price was $227.30 and its lowest price was $112.80.