Earnings Results: AMD stock slips as revenue forecast dips below Street consensus

by | Aug 2, 2022 | Stock Market

Advanced Micro Devices Inc. shares declined in the extended session Tuesday after the chip maker’s revenue forecast fell below the Wall Street consensus after posting record sales, topping Street expectations and reporting a huge surge in data-center sales. “Taking a step back, while there has been additional softness in the PC market in recent months, we believe we’re very well positioned to navigate through the current environment based on the strength of our existing product portfolio and upcoming product launches,” Lisa Su, AMD’s chief executive, told analysts on a conference call.

“Despite the current macroeconomic environment, we see continued growth in the back half of the year, highlighted by our next-generation 5-nanometer product shipments and supported by our diversified business model,” Su told analysts. AMD forecast third-quarter revenue of $6.5 billion to $6.9 billion, and restated its revenue forecast of $26 billion to $26.6 billion for the year.  Analysts surveyed by FactSet were estimating revenue of $6.84 billion for the third quarter, and $26.21 billion for the year. The company also backed its gross margin forecast to 54% for the year. Back in February, AMD forecast gross margins of 51% for 2022, and revenue of about $21.5 billion. At that time, Wall Street analysts had a consensus of $19.29 billion in revenue. Su told analysts on the call that the third-quarter outlook implies data-center sales to lead revenue g …

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