Advanced Micro Devices gave investors a reason to cheer on Tuesday when it reported earnings topped expectations and said it would sell more chips at a higher profit than previously anticipated.
AMD (Ticker: AMD) stock weighed in the extended session, gaining nearly 10% since its earnings release.
Titan Intel (INTC) small rival to reckon, AMD, said its personal computer and server chips were going to produce more revenue on a wider margin than it had previously thought amid the Kovid-19 epidemic. Its custom chips unit will also contribute more significantly to revenue, suggesting that the next-generation videogame console, likely to be launched in the fall, will continue to increase the company’s revenue.
AMD beat investor expectations for the second quarter closing in June, reporting net income of $ 157 million, amounting to 13 cents per share, compared to a profit of $ 35 million, or 3 cents per share. , one year ago. Adjusted for stock compensation, AMD reported earnings of 18 cents per share. The company booked total revenue of $ 1.93 billion.
Wall Street had expected adjusted earnings of 16 cents on sales of $ 1.86 billion.
AMD CEO Lisa Su said, “We delivered strong second quarter results due to record notebook and server processor sales.” Despite some macroeconomic uncertainty, we are boosting our full-year revenue outlook As we enter the next phase of our growth driven by the acceleration of our business in many markets. “
AMD said it now expects third-quarter sales of $ 2.45 billion to $ 2.65 billion. Sell-side analysts previously projected third-quarter sales of $ 2.31 billion.
AMD stock has benefited from Intel’s revelations last week that its seven-nanometer manufacturing process was delayed by another six months and that AMD benefited from a second lift after announcing a new line of chips. AMD shares have risen 35% this month as the S&P 500 index has gained 5.4%. The PHLX Semiconductor Index advanced 6% in the previous month.
Improvement and amplification: AMD reported a profit of $ 35 million or 3 cents per share for the quarter ended June 2019. In the previous version of this article, the figure of net income and earnings per share for the year-ago period was incorrect.
Write Max A. Cherney at [email protected]