On the same day that Google's parent company Alphabet released its third quarter financial report, AMD, led by Su Zifeng as CEO, also released its third quarter financial report. Like in the second quarter, their revenue for this quarter has also increased year-on-year and month on month, with a triple digit jump in net profit.
AMD's third quarter revenue and adjusted diluted earnings per share both exceeded Wall Street analysts' previous expectations, but the outlook for fourth quarter revenue did not meet expectations. After the release of the financial report, AMD's after hours stock price dropped significantly by over 7%.
The report shows that AMD's third quarter revenue was $6.819 billion, an increase of 18% compared to the same period last year's $5.80 billion and a 17% increase compared to the previous quarter's $5.835 billion; Net profit was 771 million US dollars, an increase of 158% compared to the same period last year's 299 million US dollars, and an increase of 191% compared to the previous quarter's 265 million US dollars; Non GAAP adjusted net profit was $1.504 billion, a 33% increase from $1.135 billion in the same period last year and a 34% increase from $1.126 billion in the previous quarter.
The gross profit for the third quarter was 3.657 billion US dollars, a year-on-year increase of 23% and a month on month increase of 18%; The gross profit margin of 54% has also increased year-on-year and month on month, compared to 53% in the previous quarter and 51% in the same period last year; The operating profit of 1.715 billion US dollars was also higher than the same period last year's 1.276 billion US dollars and the previous quarter's 1.264 billion US dollars, with a year-on-year and month on month increase of over 30%.
Under the US Generally Accepted Accounting Principles, gross profit reached 3.419 billion US dollars, a year-on-year increase of 24% and a month on month increase of 19%; A gross profit margin of 50%, which is higher than the 49% in the previous quarter and the 47% in the same period last year; The operating profit of 724 million US dollars increased significantly by 223% year-on-year and 169% month on month.
In the financial report, AMD expects higher revenue in the fourth quarter, with a forecast of $7.5 billion, fluctuating by $300 million, or between $7.2 billion and $7.8 billion. The gross profit margin under non GAAP is expected to be around 54%. According to data provided by Yahoo Finance, 33 analysts had previously expected AMD's fourth quarter revenue to reach $7.54 billion on average.
Divided by business unit, AMD's data center division had a revenue of $3.549 billion in the third quarter, a significant increase of 122% compared to the same period last year's $1.598 billion and a 25% increase compared to the previous quarter's $2.834 billion; The operating profit was 1.041 billion US dollars, an increase compared to the same period last year's 306 million US dollars and the previous quarter's 743 million US dollars.
The revenue of the customer department in the third quarter was 1.881 billion US dollars, an increase of 29% compared to the same period last year's 1.453 billion US dollars, and an increase of 26% compared to the previous quarter's 1.492 billion US dollars; The operating profit was 276 million US dollars, a significant increase compared to the same period last year's operating profit of 140 million US dollars and the previous quarter's operating profit of 89 million US dollars.
The third quarter revenue of the gaming department was $1.506 billion, a decrease of 69% compared to the same period last year's $1.631 billion and a decrease of 29% compared to the previous quarter's $648 million; The operating profit was $12 million, a significant decrease compared to the same period last year's operating profit of $208 million and the previous quarter's operating profit of $77 million.
The revenue of the embedded products department was $927 million, a decrease of 25% compared to the same period last year's $1.243 billion, and an increase of 8% compared to the previous quarter's $861 million; The operating profit was $372 million, a significant decrease from $612 million in the same period last year, but an increase from $345 million in the previous quarter.
The operating loss of all other departments was $977 million, which narrowed compared to the operating loss of $1.042 billion in the same period last year and the operating loss of $985 million in the previous quarter.