Earnings Results: AMD stock rallies more than 4% on earnings beat

by | Aug 1, 2023 | Stock Market

Advanced Micro Devices Inc. shares surged in the extended session Tuesday after the chip maker’s results topped Wall Street estimates. AMD
AMD,
+2.80%
shares rallied more than 4% after hours, following a 2.9% gain to close the regular session at $117.66.

The company reported second-quarter net income of $27 million, or 2 cents a share, compared with $447 million, or 27 cents a share, in the year-ago period. Adjusting for stock-based compensation and other one-time items, AMD reported earnings of 58 cents a share, compared with $1.05 a share last year. Second-quarter revenue fell to $5.36 billion from $6.55 billion a year ago, and gross margins fell to 50% from 54% a year ago. Analysts surveyed by FactSet expect adjusted second-quarter earnings of 57 cents a share on revenue of $5.32 billion. The company had forecast $5 billion to $5.6 billion in revenue and second-quarter gross margins of about 50%. Read: Will AI do to Nvidia what the dot-com boom did to Sun Microsystems? Analysts compare current hype to past ones. Last quarter, AMD highlighted its AI and data-center products for the second half of the year but admitted it will take a rebound in the PC market to improve gross margins. Also see: Is AMD ceding ground to Intel? Wall Street will soon find out. Data-center revenue declined 11% to $1.3 billion, while the Street expected $1.37 billion; PC sales fell 54% to $998 million, while analysts expected $843.3 million; gaming sales declined 4% to $1.6 billion, c …

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