Chipmaker Superior Micro Gadgets (AMD) late Tuesday beat expectations for the primary quarter however got here up quick on its gross sales forecast for the second quarter. AMD inventory fell in prolonged buying and selling.
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The Santa Clara, Calif.-based firm earned an adjusted 60 cents a share on gross sales of $5.35 billion within the March quarter. Analysts polled by FactSet earlier forecast AMD earnings of 56 cents a share on gross sales of $5.31 billion. On a year-over-year foundation, AMD earnings sank 47% whereas gross sales dropped 9%.
For the second quarter, AMD predicted income of about $5.3 billion. Nevertheless, Wall Road was in search of $5.5 billion. In the identical quarter final yr, AMD gross sales have been $6.55 billion.
“We stay assured in our progress within the second half of the yr because the PC and server markets strengthen and our new merchandise ramp,” Chief Monetary Officer Jean Hu mentioned in a information launch.
AMD Inventory Slides After Quarterly Report
In after-hours buying and selling on the inventory market at present, AMD inventory dropped 4.6% to 85.79. Through the common session Tuesday, shares rose 0.3% to shut at 89.91.
AMD reported $1.3 billion in data-center chip gross sales within the first quarter, up a fraction from the identical interval final yr. However PC chip income crashed 65% yr over yr to $739 million amid weak private pc gross sales.
In the meantime, gaming chip gross sales dipped 6% to $1.76 billion. Additional, embedded processor gross sales jumped 162% to $1.56 billion within the first quarter.
AMD shares have an IBD Composite Score of 98 out of 99, based on IBD Inventory Checkup.
Furthermore, AMD inventory is on three IBD inventory lists: IBD 50, Large Cap 20 and Tech Leaders.
Comply with Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on client expertise, software program and semiconductor shares.
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