AMD guidance falls short. The stock falls.
Advanced Micro Devices reported earnings for the March quarter above expectations, but gave a disappointing forecast for the current quarter.
Shares fell in after-market trading.
The semiconductor company reported first-quarter adjusted earnings per share of 60 cents, compared with the consensus call for 56 cents among analysts surveyed by FactSet. Revenue came in at $5.4 billion, which was above analysts’ expectations of $5.3 billion.
For the current quarter, AMD (ticker: AMD ) forecast revenue of $5 billion to $5.6 billion, a range whose midpoint was slightly below the consensus call for $5.5 billion.
“We performed very well in the first quarter as we delivered better-than-expected revenue and earnings in a mixed demand environment,”[ads1]; AMD CEO Dr. Lisa Su said in the press release.
AMD shares fell 3.6% to $86.72 in late trading.
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Revenue from the chipmaker’s data center unit was roughly flat from a year earlier in the March quarter, while revenue in its client PC business fell 65% from a year earlier. AMD’s gaming business fell by 6% in the same period.
On a conference call with investors and analysts, Su said the company is “well positioned” to grow its cloud and enterprise business in the second half of the year, citing the technology leadership of AMD’s server processors. For the client PC business, she also expects it to grow from one quarter to the next during the June quarter and into the second half of the year.
Demand for computers has been weaker in recent quarters. Last month, research firm IDC said worldwide shipments of PCs fell 29% in the March quarter from a year earlier. This follows a decrease of 28% from a year earlier in the December quarter and a decrease of 15% in the September quarter.
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Write to Tae Kim at tae.kim@barrons.com
