Earnings Results: AMD’s stock drops after earnings as revenue outlook comes in light

by | Oct 31, 2023 | Stock Market

Advanced Micro Devices Inc. shares dropped 5% in Tuesday’s extended session after the company posted upbeat profit metrics for the latest quarter but came up short with its revenue forecast for the current period. The company posted third-quarter net income of $299 million, or 18 cents a share, compared with $66 million, or 4 cents a share, in the year-before quarter.

On an adjusted basis, AMD
earned 70 cents a share, up from 67 cents a share a year before, while analysts tracked by FactSet were expecting 68 cents a share. Revenue increased to $5.80 million from $5.57 billion a year before, while the FactSet consensus was for $5.70 billion. Don’t miss: Wolfspeed’s stock rallies as company notches smaller loss than expected Data-center revenue came in at $1.6 billion, flat with the year-earlier sum and in line with the FactSet consensus, as AMD saw growth from its 4th Gen Epyc central processing units but declines in adaptive system-on-ship (SoC) data-center products. Revenue for that segment was up 21% sequentially, however. “Our data-center business is on a significant growth trajectory based on the strength of our Epyc CPU portfolio and the ramp of Instinct MI300 accelerator shipments to support multiple deployments with hyperscale, enterprise and AI customers,” Chief Executive Lisa Su said in a release. AMD posted $1.5 million in client-segment revenue, up 42% from a year before amid strength in Ryzen mobile processors. The FactSet consensus was for $1.2 billion. Gaming revenue fell 8% to $1.5 billion and matched the FactSet consensus. The company also saw $1.2 billion in embedded sales, down 5% from a year before and slightly below the FactSe …

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