AMD beats Q3 estimates, outlook light
AMD reported better-than-expected third quarter financials thanks to increased sales in its computing and graphics segment. However, AMD's outlook for the current quarter sent its shares down after hours.
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The semiconductor maker posted a net income of $71 million, or 7 cents per share.
Non-GAAP earnings were 10 cents per share on revenue of $1.64 billion, up 26 percent year-over-year.
Wall Street was expecting AMD to post earnings of 8 cents per share on revenue of $1.51 billion.
"Strong customer adoption of our new high-performance products drove significant revenue growth and improved financial results from a year ago," said AMD chief executive Lisa Su. "Our third quarter new product introductions and financial execution mark another important milestone as we establish AMD as a premier growth company in the technology industry."
Here's a closer breakdown of the company's performance, by department:
- Computing and graphics: Segment revenue increased 74 percent year-over-year to $819 million. AMD says the increase was driven by sales of its Radeon graphics and Ryzen desktop processors.
- Enterprise, embedded and semi-custom: Segment revenue was essentially flat due to lower semi-custom SoC sales, AMD said.
For the current quarter, AMD expects revenue to decrease approximately 15 percent from Q3, plus or minus 3 percent. Analysts were expecting Q4 earnings of 4 cents a share on revenue of $1.34 billion.
AMD's shares were down more than 8 percent in after-market trading.