This post was originally published on this site
https://i-invdn-com.akamaized.net/news/LYNXMPEB3F137_M.jpg
Investing.com – Shares of Advanced Micro Devices (NASDAQ:AMD) rose more than 3% Wednesday, after the company announced a $4 billion share buyback plan.
AMD expects to fund repurchases through cash generated from operations “which have been strengthened by the company’s strong operational results”, the company said.
Revenue for the first quarter ending March 27 was $3.45 billion, up 93% from the same period a year ago. Net income was $642 million, up 189%.
The company’s cash, cash equivalents and short-term investments as of March 27 came at $3.12 billion, according to its April 27 earnings release. This liquidity will come in handy for the company to fund its buyback scheme.
AMD will repurchase stocks in the open market. This will help it offset dilution from stock issuances and reduce share count over time, thereby improving its earnings per share.
The company said the exercise has no termination date and may be suspended or discontinued at any time.
For the full year, AMD expects revenue growth of approximately 50% over 2020 driven by growth in all businesses, up from prior guidance of approximately 37% annual growth.
