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Chipmaker Advanced Micro Devices (AMD) late Tuesday beat expectations for the first quarter but came up short on its sales forecast for the second quarter. AMD stock fell in extended trading.
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The Santa Clara, Calif.-based company earned an adjusted 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 earnings sank 47% while sales dropped 9%.
For the second quarter, AMD predicted revenue of about $5.3 billion. However, Wall Street was looking for $5.5 billion. In the same quarter last year, AMD sales were $6.55 billion.
“We remain confident in our growth in the second half of the year as the PC and server markets strengthen and our new products ramp,” Chief Financial Officer Jean Hu said in a news release.
AMD Stock Slides After Quarterly Report
In after-hours trading on the stock market today, AMD stock dropped 4.6% to 85.79. During the regular session Tuesday, shares rose 0.3% to close at 89.91.
AMD reported $1.3 billion in data-center chip sales in the first quarter, up a fraction from the same period last year. But PC chip revenue crashed 65% year over year to $739 million amid weak personal computer sales.
Meanwhile, gaming chip sales dipped 6% to $1.76 billion. Further, embedded processor sales jumped 162% to $1.56 billion in the first quarter.
AMD shares have an IBD Composite Rating of 98 out of 99, according to IBD Stock Checkup.
Moreover, AMD stock is on three IBD stock lists: IBD 50, Big Cap 20 and Tech Leaders.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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