AMD earnings Q4 2022

AMD Chair and CEO Lisa Su speaks at the AMD Keynote address during the Consumer Electronics Show (CES) on January 4, 2023 in Las Vegas, Nevada.

Robyn Beck | AFP | Getty Images

AMD reported fourth-quarter earnings on Tuesday, beating Wall Street expectations for sales and profit, but guided analysts to a 10% decline in year-over-year sales in the current quarter. The stock rose over 2% in extended trading. Here’s how the company did versus Refinitiv consensus estimates for the quarter ending in December:

  • EPS: $0.69, adjusted, versus $0.67 per share expected
  • Revenue: $5.6 billion, versus $5.5 billion expected

AMD said it expected $5.3 billion in sales in the current quarter, slightly lower than a Refinitiv estimate of $5.47 billion. AMD’s estimate suggests a 10% decline in sales in the current quarter. AMD’s sales rose 44% in 2022.

The company also said it expected its adjusted gross margin to be about 50%, a key metric for chipmakers.

AMD reported earnings as many of its rival chipmakers have stumbled in recent weeks, citing lower consumer demand for finished electronics and gluts of parts needed to make PCs and servers.

Intel, AMD’s primary competitor, reported a disastrous quarter last week that included a weak 2023 outlook including a 40% year-over-year decline in sales in the March quarter.

The chipmaker attributed its beat to strong growth in its embedded and data center businesses, and said that its client revenue, or chips for PCs and laptops, and its gaming segment were down.

AMD’s data center segment rose 42% year-over-year to $1.7 billion. Its embedded segment grew 1,868%, AMD said, because of sales from its purchase of Xilinx.

While AMD said it saw slow sales for its PC chips and graphics processors, it said its data center segment rose 42% year-over-year, suggesting it took market share from Intel.

But its client group, which includes sales from PC processors, was down 51% year-over-year because of a slumping PC market, AMD said. It added that its customers have too much inventory of its chips, a theme other semiconductor companies have mentioned in recent weeks. The global PC market is in a protracted slowdown, according to estimates.

AMD CEO Lisa Su told analysts that the company expects the total PC market to be down about 10% in 2023, and said the PC environment was “weak.”

“Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio,” Su said in a statement.

AMD’s gaming business, which is comprised of graphics cards and chips for gaming consoles, was down 7% year-over-year. The decrease came from graphics cards and was offset by “semi-custom” revenue, which how the company reports sales from chips for gaming systems like the PlayStation 5.

AMD expects that the segments with PC chips and graphics processors will continue to decline in the current quarter, but data center and embedded sales will grow.

Silvergate Capital shares jump after BlackRock reports increased stake in the crypto bank

Cryptocurrencies have been under immense pressure after the collapse of a so-called stablecoin called terraUSD.

Umit Turhan Coskun | Nurphoto via Getty Images

Silvergate Capital jumped on Tuesday afternoon after BlackRock reported a 7% stake in the crypto bank. 

Shares of Silvergate rose 9.96% after a Jan. 31 filing with the Securities and Exchange Commission became public. BlackRock increased its holding in Silvergate to 7.2%, an increase from the 5.9% it previously reported, according to the filing. 

More than 70% of Silvergate Capital shares that are freely available to trade are sold short, according to FactSet data.

While cryptocurrencies and related stocks have enjoyed a strong January rally this year, Silvergate has been struggling in the aftermath of the FTX blowup. Shares of the bank slid sharply November, when the crypto exchange FTX, a Silvergate customer, collapsed in scandal.

Silvergate shares are now down about 20% in 2023. They are off by about 87% over the past year.

Earlier this month, shares of Silvergate tanked more than 40% after the bank reported massive withdrawals in the fourth quarter in light of the FTX collapse. Despite the rise in cryptocurrencies and stocks this month, investor confidence is still shaken.

BlackRock, the largest asset manager in the world, has maintained a positive stance toward crypto and blockchain technology. In addition to being an investor in FTX, late last summer the firm launched a private trust to give clients exposure to spot bitcoin.

States miss deadline for deal on water cuts

The Hoover Dam water intake towers at Lake Mead, the country’s largest man-made water reservoir, formed by the dam on the Colorado River in the Southwestern United States, has dropped 2 inches every day since February (26 feet in one year), are viewed at approximately 25% capacity on July 12, 2022 near Boulder City, Nevada. (Photo by George Rose/Getty Images)

George Rose | Getty Images News | Getty Images

The seven states that rely on the drought-stricken Colorado River failed to meet a Jan. 31 federal deadline to strike a deal on voluntarily cutting water use, an impasse that could eventually prompt the Biden administration to impose cuts as the West grapples with a historic drought and record low reservoir levels.

After negotiations reached a standstill, six of the seven states dependent on the Colorado River instead submitted a proposal to the Bureau of Reclamation that outlined ways to reduce water use and factored in water that’s lost because of evaporation and leaky infrastructure.

The proposal, titled the “consensus-based modeling alternative,” was jointly submitted by Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming.

The proposal notably excluded California, the largest user of the Colorado River, which supplies water to 40 million people. Officials said the state will release its own plan.

The six states’ document outlined an approach to help protect Glen Canyon Dam and Hoover Dam infrastructure, water deliveries and power production and prevent the Colorado River’s reservoirs from reaching “dead pool,” which happens when water drops to a level so low that it can’t move downstream from the dam.

The Colorado River has long been over-allocated, but climate change has worsened drought conditions in the region and reservoir levels have plummeted over the past couple decades. As the western U.S. experiences its driest two decades in at least 1,200 years, water levels in the country’s two largest reservoirs, Lake Mead and Lake Powell, have reached record lows.

Sarah Porter, director of the Kyl Center for Water Policy at Arizona State University, said the states’ proposal appeared to be a “very sincere commitment” to advance negotiations over water cuts and keep reservoirs from falling to dangerous levels.

How the Western 'megadrought' could cause more 'water wars'

“It’s easy to overlook how difficult and complex this is for every single state,” Porter said. “We have to take less water out of the system, and these are the hardest negotiations to do.”

Water officials emphasized the proposal was not an official agreement between states but rather a critical step toward protecting the Colorado River and eventually reaching a seven-state agreement.

“This modeling proposal is a key step in the ongoing dialogue among the Seven Basin States as we continue to seek a collaborative solution to stabilize the Colorado River system,” Tom Buschatzke, director of the Arizona Department of Water Resources, said in a statement.

However, the failure to reach a deal marks the second time in six months that the seven states using Colorado River water have missed a deadline to agree on cuts under the Interior Department, which manages flows on the river.

Historically, states have been the ones to figure out how to share the Colorado River water. But a failure to reach an agreement on reductions could place the responsibility on the federal government.

A field of spinach is irrigated with Colorado River water in Imperial Valley, California, December 5, 2022.

Caitlin Ochs | Reuters

The Biden administration has urged the seven states to save between 2 million and 4 million acre-feet of water, or up to a third of the river’s average flow. For comparison, California is entitled to use 4.4 million acre-feet of river water per year and Arizona is entitled to 2.8 million acre-feet per year. (An acre-foot of water is about what two average households consume each year.)

So far, Arizona has taken the brunt of the government’s water reductions — particularly the state’s farmers, who grow produce in the desert and use nearly three-quarters of the available water supply to irrigate crops.

The alternative outlined by the six states proposes water cuts that would nearly reach the lower end of 2 million acre-feet that federal officials have urged, with nearly all of the mandatory cuts focused on Arizona, California and Nevada.

The proposal also calls for imposing “voluntary conservation measures” in Colorado, New Mexico, Utah and Wyoming.

Becky Mitchell, director of the Colorado Water Conservation Board, said this approach “appropriately distributes the burden across the Basin and provides safeguards for the Tribes, water users, and environmental values in the Upper Basin.”

The Bureau of Reclamation is set to release in March a draft of its proposal on how it operates Glen Canyon and Hoover dams and will consider the six states’ letter as part of that plan.

An irrigator adjusts a pump pulling Colorado River water from a lined canal to irrigate a field of cauliflower in Imperial Valley, California, December 5, 2022.

Caitlin Ochs | Reuters

FBI searched Biden’s office after classified documents were found last year

An office building housing the Penn Biden Center, a think tank affiliated with the University of Pennsylvania, is seen in Washington, DC, January 10, 2023, following reports that classified documents from the time when US President Joe Biden was serving as Barack Obama’s vice president have been found at the center that Biden sometimes used as office space.

Saul Loeb | AFP | Getty Images

FBI agents searched the office President Joe Biden used after his vice presidency in Washington, D.C. in mid-November after his lawyers first discovered classified documents there earlier that month, two senior law enforcement officials told NBC News.

The White House and Biden’s personal attorneys had not previously disclosed the search of the Penn Biden Center for Diplomacy and Global Engagement, even as they faced weeks of questions about the discovery of classified records. CBS broke the news of the FBI search on Tuesday.

The officials told NBC that Biden’s lawyers cooperated fully with the search, and the Justice Department did not issue a search warrant. Biden’s team also worked with the Justice Department in a later FBI search of his Wilmington, Delaware home, for which it also did not issue a warrant.

The president’s personal attorneys discovered documents at the think tank office on Nov. 2. The attorneys notified the National Archives, leading to an investigation by the Justice Department. But the White House did not disclose the development until it was reported on Jan. 9.

Attorney General Merrick Garland announced on Jan. 12 that he appointed Robert Hur, a former U.S. attorney, as special counsel to investigate.

Biden’s attorneys later found more documents at the president’s home in Wilmington, Delaware, on Dec. 20, prompting a search of the home by FBI agents on Jan. 20. Biden’s personal lawyers said Justice Department investigators found more than half a dozen additional documents, some marked classified, in the search. The documents discovered range from his Senate tenure to his time as vice president under former President Barack Obama.

Former President Donald Trump is also facing a special counsel investigation for failing to turn over classified documents. His Florida Mar-a-Lago home was searched by FBI agents in early August. Unlike Biden, who agreed to let agents in to search, the Justice Department served Trump a search warrant after a back and forth.

Last week, it was also reported that Trump’s Vice President Mike Pence also had classified documents in his home in Indiana.

George Santos won’t serve on House committees amid investigations

Embattled Republican Rep. George Santos will not serve on the two House committees to which he was assigned until the investigations into his conduct have concluded, his office said Tuesday.

The New York congressman will step away from the panels “until he has been properly cleared of both campaign and personal financial investigations,” his spokeswoman Naysa Woomer said. Santos informed Republican lawmakers of his decision during a closed-door conference meeting in Washington, D.C., earlier Tuesday, according to a longtime GOP lawmaker who was in the room. This person declined to be named to discuss private conversations.

Santos’ decision to recuse himself from the two panels marks one of the first tangible repercussions he has faced since admitting he fabricated key details about his biography.

But he insisted that the decision does not mean he will step down. “No I’m not” considering resigning, Santos told a reporter Tuesday morning as he rushed back to his office.

House GOP leaders have not pressured Santos to resign as they try to govern with a narrow majority. House Republican Conference Chair Rep. Elise Stefanik of New York said after the meeting that Santos “voluntarily” removed himself from the panels, but “ultimately voters decide” if he will stay in office.

A spokesman for House Speaker Kevin McCarthy, R-Calif., did not immediately respond to CNBC’s request for comment.

Santos was appointed earlier this month to posts on the House Science, Space and Technology Committee and the Small Business Committee. The GOP Steering Committee, led by McCarthy, assigned him to those panels over howls of bipartisan criticism against Santos and calls for his resignation.

The 34-year-old freshman lawmaker has faced intensifying scrutiny since shortly after he won his congressional race. A bombshell New York Times investigation at the time called into question many of Santos’ claims about his personal and professional life, as well as the sources of his campaign funds.

Days before he was sworn in to the 118th Congress, Santos admitted to lying on the campaign trail about his job experience and his college career. He apologized for “embellishing” his resume, though he denied all other wrongdoing.

But Santos is now reportedly under investigation at the local, state, federal and international levels, and he has mostly avoided answering the throngs of reporters barraging him with questions about his many unsubstantiated claims.

Santos has repeatedly vowed to serve out his full two-year term in office, arguing the voters of his Long Island-area district should have the final say on whether he stays or goes. McCarthy, who leads a slim and unruly GOP House majority and has few votes to spare, has echoed Santos’ line and defended the decision to give him committee assignments.

That stance clashes with Republican leaders from near Santos’ own district, who have denounced the scandal-plagued congressman and urged him to resign.

The voters in Santos’ district aren’t keen on keeping him around, either, according to a new poll released Tuesday morning.

An overwhelming 78% of registered voters in New York’s 3rd Congressional District — including 71% of Republican respondents — say Santos should resign, the survey from Newsday/Siena College found. More than four out of five respondents viewed Santos unfavorably, according to the poll.

Notably, 71% of the respondents said it was wrong for McCarthy to seat Santos on multiple committees.

The pollster surveyed 653 voters from Santos’ district between Jan. 23 and last Thursday. The poll has an overall margin of error of 4.4 percentage points.

As the pressure against Santos mounts, so have the number of investigations in his orbit.

Texas winter weather forces airlines to cancel flights

Delayed flights prepare to depart from Dallas-Fort Worth International Airport (DFW) on January 11, 2023 in Dallas, Texas.

John Moore | Getty Images

More than 1,000 U.S. flights were canceled Tuesday as winter weather hit Texas.

Over 700 flights to and from American Airlines‘ hub Dallas/Fort Worth International Airport were canceled, about 40% of the airport’s schedule, according to FlightAware. Nearly 200 flights at Dallas Love Field, where Southwest Airlines is based, were canceled.

The Federal Aviation Administration slowed arrivals into both airports. Airlines lifted fees or fare differences for travelers affected by the weather if they can fly in early February instead.

Austin-Bergstrom International warned travelers about dangerous road conditions and closures heading to the airport.

Airlines canceled 1,129 U.S. flights on Monday, about 4.6%, the biggest share since yearend holiday disruptions, according to FlightAware data.

Nike is suing Lululemon over shoe designs

Nike is suing Lululemon for patent infringement related to at least four of the apparel company’s shoes, extending a contentious legal history between the two companies.

In the complaint, filed Monday in Manhattan federal court, Nike claims it has suffered economic harm and irreparable injury as a result of Lululemon’s sale of the Chargefeel Mid, Chargefeel Low, Blissfeel and Strongfeel shoes.

Nike said its three patent claims center on textile elements including knitted elements, webbed areas and tubular structures on the footwear. One patent claim also addresses the footwear’s performance.

The Oregon-based company is seeking unspecified damages.

Vancouver-based Lululemon did not immediately respond to a request for comment.

Lululemon released Blissfeel, its first-ever running shoe for women, in March, marking the company’s official foray into the sneaker market. The second shoe in its lineup, the Chargefeel, launched in July for running and training.

In January 2022, Nike sued Lululemon accusing the Canadian apparel maker of infringing on six patents over its at-home Mirror fitness device and related mobile applications. Nike is seeking triple damages in that case.

Nike claimed it invented — and filed a patent application back in 1983 on — a device that determined a runner’s speed, calories expended, distance traveled and time elapsed. Interactive workout platform Mirror guides users through cardio classes and other exercises. The complaint noted similarities between the technology enabling users to compete with other users, record their performance and target specific exertion levels.

Lululemon said in a statement at the time, “The patents in question are overly broad and invalid. We are confident in our position and look forward to defending it in court.”

General Motors (GM) earnings Q4 2022

Mary Barra, CEO, GM at the NYSE, November 17, 2022.

Source: NYSE

DETROIT — General Motors handily beat Wall Street’s top- and bottom-line expectations for the fourth quarter, while forecasting another solid year of results in 2023.

The strong report suggests GM is hanging onto record, or near-record, results even as the U.S. automotive industry begins to normalize after several years of record-low inventories and resilient consumer demand.

Shares of GM were up roughly 5% in premarket trading Tuesday.

Here’s how GM performed to close out last year, compared with analysts’ estimates as compiled by Refinitiv:

  • Adjusted earnings per share: $2.12 vs. $1.69 expected
  • Revenue: $43.11 billion vs. $40.65 billion expected

The fourth-quarter results easily topped a year earlier, when the automaker reported an adjusted EPS of $1.35 and revenue of $33.58 billion for the final three months of 2021.

GM’s full-year 2022 revenue came in at $156.7 billion, with net income attributable to stockholders of $9.9 billion and adjusted earnings before interest and tax at a record $14.5 billion. Those results marked the high-end of the company’s previously revised guidance.

Still, the automaker is showing signs of a margin squeeze. GM’s net income slipped last year, down by less than 1% from full-year 2021 to $9.9 billion, with a profit margin that was off 1.6 percentage points to 6.3%. Its adjusted profit margin was 9.2%, down 2.1 percentage points compared with the previous year.

GM said it incurred special charges in the fourth quarter of $511 million related to a buyout program for its Buick dealers and $657 million related to shuttering its limited operation in Russia.

2023 guidance

For 2023, GM expects net income attributable to stockholders of between $8.7 billion and $10.1 billion. It expects adjusted earnings before interest and taxes of $10.5 billion to $12.5 billion and adjusted earnings per share of between $6 and $7.

Those results would be below 2022 earnings, but above average analyst forecasts compiled by Refinitv that called for EPS of $5.73 this year.

A five-day performance of GM’s stock.


McDonald’s (MCD) Q4 2022 earnings

A sign is posted in front of a McDonald’s restaurant on April 28, 2022 in San Leandro, California.

Justin Sullivan | Getty Images

McDonald’s on Tuesday reported that U.S. customers are visiting its restaurants more, helping the fast-food giant top Wall Street’s estimates for its fourth-quarter earnings and revenue.

It’s the second consecutive quarter that the company noted increasing traffic domestically, bucking the industry trend. Many consumers have cut back restaurant spending in response to inflation. But McDonald’s has largely benefitted from the change in consumer behavior since many have traded down from full-service restaurants to its Big Macs and McNuggets.

The fast-food giant is expecting that short-term inflation will continue in 2023, according to a statement from CEO Chris Kempczinski.

McDonald’s shares fell more than 1% before the bell Tuesday.

Here’s what the company reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:

  • Earnings per share: $2.59 vs. $2.45 expected
  • Revenue: $5.93 billion vs. $5.68 billion expected

The company reported fourth-quarter net income of $1.9 billion, or $2.59 per share, up from $1.64 billion, or $2.18 per share, a year earlier.

Net sales fell 1% to $5.93 billion but rose 5% when stripping out foreign currency changes. Globally, same-store sales climbed 12.6% in the quarter, fueled by strong demand in the U.S. and its largest European markets.

In McDonald’s home market, higher menu prices and increased demand drove same-store sales growth of 10.3%, topping StreetAccount estimates of 8.1%. The company also noted the success of its McRib promotion, which labeled the limited-time item’s annual return as its “farewell tour.”

Outside of the United States, the company also saw stronger-than-expected growth. Its international operated markets segment reported a same-store sales increase of 12.6%, fueled by strong performance in the United Kingdom, Germany and France.

Its international developmental licensed markets division saw same-store sales climb 16.5%, driven by Japan and Brazil. Sales in China, however, disappointed due to Covid-related government restrictions.

Looking to 2023, McDonald’s is forecasting that it will open 1,900 new restaurants. More than 400 of those will be in the U.S. and international operated markets, while the rest will be opened by developmental licensees.

Earlier in January, the company said it would be accelerating new restaurant development as part of a broader strategy shift. McDonald’s is planning to add 100 more new net restaurants this year than it expected for 2022.

The company is planning to use between $2.2 billion and $2.4 billion on capital expenditures this year. About half of those funds will be earmarked for new restaurant development in the U.S. and its international operated markets.

Read the full earnings report here.