Chipmaker AMD Narrowly Tops Fourth-Quarter Targets

Q4 was good for AMD … but they must keep the heat on Intel and beef up their server business too!

Taken from Investors … Chipmaker Advanced Micro Devices (AMD) late Tuesday narrowly beat Wall Street’s targets for the fourth quarter, but first-quarter sales guidance in AMD earnings missed views. The earnings news sent AMD stock lower in extended trading.

The Santa Clara, Calif.-based company earned an adjusted 32 cents a share on sales of $2.13 billion in the December quarter. Wall Street expected AMD earnings of 31 cents a share on sales of $2.11 billion. In the year-earlier quarter, AMD earned 8 cents a share on sales of $1.42 billion.

For the current quarter, AMD expects revenue of $1.8 billion, up 42% year over year. It did not give a target for earnings per share. Wall Street predicted AMD earnings of 20 cents a share on sales of $1.86 billion in the March quarter. In the year-earlier period, AMD earnings were 6 cents a share on sales of $1.27 billion.

However, for the full year, AMD forecasts revenue growth of 28% to 30%. The midpoint of that guidance translates to sales of $8.68 billion. Wall Street was looking for $8.58 billion, according to Zacks Investment Research.

Source: Investors