Shares of chipmaker AMD fell roughly 25 percent in extended trading Wednesday after the company reported third-quarter revenue that fell below Wall Street’s estimates and delivered weak fourth-quarter guidance.
Here’s how the company did compared with analyst predictions:
- Earnings: 13 cents per share, excluding certain items, vs. 12 cents per share forecast by Refinitiv
- Revenue: $ 1.65 billion vs. $ 1.7 billion forecast by Refinitiv
Third-quarter revenue represents a 4 percent upside from the year-ago period. But the company is guiding toward weaker revenue for the remainder of the year, weighed down by lower sales.
AMD is projecting fourth-quarter revenue of $ 1.45 billion, below consensus estimates of $ 1.6 billion.
“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 datacenter graphics products,” CEO Lisa Su said in the company’s earnings release. “Client and server processor sales increased significantly although graphics channel sales were lower in the quarter.”
Revenue from the company’s computing and graphics segment rang in at $ 938 million, down 14 percent from the previous quarter.
AMD makes high-performance computer chips for gaming and image processing. The company’s stock has been on a tear this year, up more than 120 percent so far in 2018 as of Wednesday’s close.
Correction: This story has been updated to remove an incorrect revenue comparison for the fourth quarter of 2018.