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Superior Micro Units (AMD) late Tuesday missed Wall Avenue’s lowered expectations for the third quarter and dissatisfied with its gross sales steering. Nonetheless, AMD inventory rose in prolonged buying and selling as traders wager that the worst is over for the chipmaker.
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The Santa Clara, Calif.-based firm earned an adjusted 67 cents a share on gross sales of $5.57 billion within the September quarter. Analysts polled by FactSet had anticipated AMD earnings of 69 cents a share on gross sales of $5.65 billion. On a year-over-year foundation, AMD earnings fell 8% whereas gross sales rose 29%.
On Oct. 6, AMD slashed its outlook for the third quarter, citing weak private pc gross sales.
For the present quarter, AMD predicted gross sales will rise 14% to $5.5 billion. Nevertheless, analysts have been predicting $5.95 billion.
In after-hours buying and selling on the inventory market right now, AMD inventory climbed 2% to 60.86. Throughout the common session Tuesday, AMD inventory dipped 0.7% to shut at 59.66. As of Tuesday’s shut, AMD inventory is down 59% in 2022.
“Third-quarter outcomes got here in beneath our expectations because of the softening PC market and substantial stock discount actions throughout the PC provide chain,” Chief Govt Lisa Su mentioned in a information launch.
She added, “Regardless of the difficult macro atmosphere, we grew income 29% yr over yr pushed by elevated gross sales of our information heart, embedded and recreation console merchandise.”
AMD’s data-center chip gross sales jumped 45% yr over yr to $1.6 billion within the third quarter. Its gaming chip gross sales elevated 14% to $1.6 billion. However PC chip gross sales fell 40% to $1 billion.
Earnings studies from semiconductor shares this week have been a blended bag. On Monday, Lattice Semiconductor (LSCC) and Rambus (RMBS) delivered beat-and-raise quarterly studies.
In the meantime, NXP Semiconductors (NXPI) and Onsemi (ON) topped their September-quarter targets however dissatisfied with their steering.
AMD inventory ranks No. 12 out of 34 shares in IBD’s fabless semiconductor trade group, in response to IBD Inventory Checkup. It has a subpar IBD Composite Score of 45 out of 99.
Comply with Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on client know-how, software program and semiconductor shares.
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