AMD shares tumble in after-hours trading as revenues fall short of expectations
ADVANCED MICRO DEV.
$164.47
02:00 18/05/24
AMD turned in third-quarter revenues below expectations on the Street on Wednesday and didn't exactly paint a promising picture of the future in its fourth-quarter guidance.
Earning per share came in at $0.13 each, excluding certain items, just ahead of estimations of a $0.12 figure per share, however, AMD reported revenues short of forecasts on the Street at $1.65bn for the quarter. Analysts had predicted the chipmaker would bring in $1.7bn throughout the period.
Although revenues were still up 4% year-on-year, AMD warned investors of weaker revenues for the remainder of its trading year as a result of decreased sales.
AMD said fourth-quarter revenues would be in the vicinity of $1.45bn, well below consensus estimates of $1.6bn.
Chief executive Lisa Su, said: "We delivered our fifth straight quarter of year-over-year revenue and net income growth driven largely by the accelerated adoption of our Ryzen, EPYC and data centre graphics products."
"Client and server processor sales increased significantly although graphics channel sales were lower in the quarter."
As of 2330 BST, AMD shares had plummeted 21.46% in after-hours trading to $17.90 each.