Chip maker advanced micro devices (AMDTuesday night exceeded forecasts for the first quarter but came in below sales forecasts for the second quarter. AMD stock fell in extended trading.
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The Santa Clara, California-based company earned 60 cents a share on sales of $5.35 billion in the March quarter. Analysts polled by FactSet earlier forecast AMD earnings of 56 cents a share on sales of $5.31 billion. On a year-over-year basis, AMD’s profits are down 47% while sales are down 9%.
For the second quarter, AMD expected revenue to be around $5.3 billion. However, Wall Street was looking for $5.5 billion. In the same quarter last year, AMD had $6.55 billion in sales.
“We remain confident of our growth in the second half of the year as the PC and server markets strengthen and our new products ramp up,” Chief Financial Officer Jin Ho said in a statement. New release.
AMD stock drops after quarterly report
In today’s stock market after-hours trade, AMD stock was down 4.6%, at 85.79. During Tuesday’s session, shares rose by 0.3%, closing at 89.91.
AMD reported $1.3 billion in data center chip sales in the first quarter, up slightly from the same period last year. But PC chip revenue fell 65% year-over-year to $739 million amid weak PC sales.
Meanwhile, sales of gaming chips fell 6%, to $1.76 billion. Moreover, sales of embedded processors jumped 162% to $1.56 billion in the first quarter.
AMD stock has a composite IBD rating of 98 out of 99, according to IBD stock check.
Moreover, AMD stock is on three IBD stock lists: defect 50And Big Cap 20 and technology leaders.
Follow Patrick Seitz on Twitter at @employee For more stories on consumer technologies, software and semiconductor stocks.
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