Advanced Micro Devices (AMD) late Tuesday missed Wall Street’s lowered expectations for the third quarter and disappointed with its sales guidance. Still, AMD stock rose in extended trading as investors bet that the worst is over for the chipmaker.
The Santa Clara, Calif.-based company earned an adjusted 67 cents a share on sales of $5.57 billion in the September quarter. Analysts polled by FactSet had expected AMD earnings of 69 cents a share on sales of $5.65 billion. On a year-over-year basis, AMD earnings fell 8% while sales rose 29%.
On Oct. 6, AMD slashed its outlook for the third quarter, citing weak personal computer sales.
For the current quarter, AMD predicted sales will rise 14% to $5.5 billion. However, analysts were predicting $5.95 billion.
AMD Stock Rises After Report
In after-hours trading on the stock market today, AMD stock climbed 2% to 60.86. During the regular session Tuesday, AMD stock dipped 0.7% to close at 59.66. As of Tuesday’s close, AMD stock is down 59% in 2022.
“Third-quarter results came in below our expectations due to the softening PC market and substantial inventory reduction actions across the PC supply chain,” Chief Executive Lisa Su said in a news release.
She added, “Despite the challenging macro environment, we grew revenue 29% year over year driven by increased sales of our data center, embedded and game console products.”
AMD’s data-center chip sales jumped 45% year over year to $1.6 billion in the third quarter. Its gaming chip sales increased 14% to $1.6 billion. But PC chip sales fell 40% to $1 billion.
AMD Has Subpar Composite Rating
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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