Advanced Micro (AMD) is set to report Q4 results on February 1, with a call to follow at 5:00pm ET.

The current S&P CapitalIQ consensus is for 46% adjusted EPS growth yr/yr to $0.76 and 39% revenue growth yr/yr to $4.52 bln.

In the previous quarter, AMD provided upside Q4 revenue guidance of $4.4-4.6 bln.

TECHS:

Expect further updates on AMD's pending merger with Xilinx (XLNX). In late December, AMD sparked minor concerns that the deal could fall through, as it delayed the timing of the two companies' close into 1Q22.

AMD’s stock has been unable to avoid the broad sell-off in the markets lately, especially in tech. AMD shares trade about 25% lower on the year. AMD is not helped out by its valuation, at ~33x FY22 earnings. AMD's multiple is quite high against a core competitor, Intel (INTC), which trades at ~13x earnings. AMD still trades at a sizeable discount relative to NVIDIA (NVDA) at ~43x.

RESULTS:

Reports Q4 (Dec) earnings of $0.92 per share, excluding non-recurring items, $0.16 better than the S&P Capital IQ Consensus of $0.76

Revenues rose 48.8% year/year to $4.83 bln vs the $4.52 bln S&P Capital IQ Consensus.

Gross margin was 50 percent, an increase of more than 5 percentage points year-over-year and approximately 2 percentage points quarter-over-quarter. The year-over-year and quarter-over-quarter increases were primarily driven by a richer product mix.

Co issues upside guidance for Q1, sees Q1 revs of $4.9-5.1 bln vs. $4.33 bln S&P Capital IQ Consensus. The year-over-year increase is expected to be driven by growth across all businesses. The quarter-over-quarter increase is expected to be driven by higher server and client processor revenue. AMD expects non-GAAP gross margin to be approximately 50.5 percent in the first quarter of 2022.

Co issues upside guidance for FY22, sees FY22 revs of $21.5 bln vs. $19.26 bln S&P Capital IQ Consensus. AMD expects non-GAAP gross margin to be approximately 51 percent for 2022.

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