AMD Revenue Outlook Beats Expectations, Shares Rise Over 7% After Hours

AMD reported third-quarter adjusted earnings of $2.09 per share, compared with $1.20 a year earlier and an estimate of $1.97. Revenue was $13.38 billion, up 45% year over year, versus an estimate of $13.08 billion. Data center revenue was $8.55 billion, up 97% year over year, versus an estimate of $8.2 billion. Adjusted gross margin was 56%, compared with 54% a year earlier and an estimate of 56.1%. Capital expenditures were $648 million, compared with $258 million a year earlier and an estimate of $647 million. Adjusted operating income was $3.92 billion, up 75% year over year, versus an estimate of $3.68 billion. Research and development expenses were $2.80 billion, up 31% year over year, versus an estimate of $2.72 billion. AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%, while analysts had expected an average of $16.3 billion. It also expects adjusted gross margin of about 55% for the fourth quarter, versus an estimate of 55.5%. Following the earnings release, AMD shares rose 7% in after-hours trading.