Advanced Micro Devices Revenues Miss Street, Outlook Weak; Shares Down 21%

(RTTNews) - Shares of Advanced Micro Devices Inc. (AMD) plunged 21 percent on Wednesday after the company's third quarter revenues and outlook for the current quarter fell short of Wall Street estimates.

Sunnyvale, California-based AMD reported third-quarter profit of $102 million or $0.09 per share, up from last year's profit of $61 million or $0.06 per share.

Excluding items, adjusted profit for the quarter was $150 million or $0.13 per share compared to a profit of $100 million or $0.09 per share a year ago. Twenty-six analysts polled by Thomson Reuters estimated an earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude special items.

AMD's revenues for the quarter grew 4 percent to $1.65 billion from $1.58 billion a year ago. Analysts had a consensus revenue estimate of $1.70 billion for the quarter.

AMD said revenue growth was driven largely by higher client revenue in the Computing and Graphics business segment.

Gross margin was 40 percent, up 4 percentage points year-over-year.

"We delivered our fifth straight quarter of year-over-year revenue and net income growth driven largely by the accelerated adoption of our Ryzen, EPYC and datacenter graphics products," said Dr. Lisa Su, AMD president and CEO.

Looking forward to the fourth quarter, the company expects revenues to be about $1.45 billion, plus or minus $50 million. Analysts currently expect revenues of $1.60billion.

AMD closed Wednesday's trading at $22.79, down $2.30 or 9.17%, on the NYSE. The stock further declined $4.82 or 21.02% in the after-hours trade.