AMD (NASDAQ:AMD) Posts Better-Than-Expected Sales In Q3 But Quarterly Guidance Underwhelms
Computer processor maker AMD reported Q3 FY2023 results beating Wall Street analysts' expectations, with revenue up 4.22% year on year to $5.8 billion. However, next quarter's revenue guidance of $6.1 billion was less impressive, coming in 4.53% below analysts' estimates. Turning to EPS, AMD made a non-GAAP profit of $0.70 per share, improving from its profit of $0.67 per share in the same quarter last year.
Sales GrowthAMD's revenue growth over the last three years has been impressive, averaging 42.5% annually. But as you can see below, this quarter wasn't particularly strong, with revenue growing from $5.57 billion in the same quarter last year to $5.8 billion. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions .
AMD returned to positive revenue growth this quarter and its management team expects the trend to continue. The company is guiding to 8.95% year-on-year growth next quarter, and analysts seem to agree, forecasting 18.9% growth over the next 12 months. This quarter, AMD's DIO came in at 142, which is 44 days above its five-year average. These numbers suggest that despite the recent decrease, the company's inventory levels are higher than what we've seen in the past.
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