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Advanced Micro Devices Beats Q3 Estimates, But Stock Falls On Lower Guidance

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Advanced Micro Devices Beats Q3 Estimates, But Stock Falls On Lower Guidance

Advanced Micro Devices, Inc. (NASDAQ: AMD) shares took a hit following the company’s third-quarter earnings release, despite an earnings and sales beat.

AMD reported third-quarter adjusted EPS of 10 cents, topping estimates by 2 cents. Sales came in at $1.64 billion, beating estimates by $130 million.

Still, investors reacted negatively, seemingly due to the fourth-quarter guidance provided by the company, which expects sales down 12-18 percent quarter over quarter.

Q3 Highlights

  • Revenue up 26 percent year over year
  • AMD expects annual 2017 revenue to increase by greater than 20 percent compared to previous guidance of mid-to-high teens percentage

“Strong customer adoption of our new high-performance products drove significant revenue growth and improved financial results from a year ago,” said Dr. Lisa Su, AMD president and CEO. “Our third quarter new product introductions and financial execution mark another important milestone as we establish AMD as a premier growth company in the technology industry.”

Shares of AMD were down over 6 percent at $13.32 in the after-hours session. See the full release here.

Related Links:

A Bullish Call On AMD's Q3 Earnings, Guidance

AMD, Microchip Tech Among Q3 Semiconductor Favorites At Jefferies

Image Credit: Quintin Lin [CC BY-SA 2.0)], via Wikimedia Commons

Posted-In: Lisa SuEarnings News Guidance After-Hours Center Best of Benzinga

 

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