AMD drops as guidance emerges despite strong Q2 results

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Advanced micro-systems (NASDAQ:AMD) shares fell 4% in after-hours trading on Tuesday as the semiconductor company offered third-quarter guidance that fell short of expectations, even though it reported second-quarter results that topped the estimates.

Following the market close, AMD (AMD) said that for its third fiscal quarter, it expects to report revenue between $6.5 billion and $6.9 billion, while analysts expected $6.81 billion. As for the full year, AMD (AMD) said revenues are expected to be between $26 billion and $26.6 billion.

That outlook took some of the shine off of what was an excellent second-quarter report for the semiconductor giant.

For the period ending June 25, AMD (AMD) said it earned $1.05 a share on $6.55 billion in revenue, helped by an 83% growth in data center sales.

AMD (AMD) also saw strength in the company’s customer segment, which includes PC processors, with sales increasing 25% year-over-year to $2.2 billion. Games revenue increased 32% year-over-year to $1.7 billion and embedded segment revenue increased 2,228% year-over-year, driven by acquisition of Xilinx by the company.

A consensus of analysts expected AMD (AMD) to earn $1.04 per share on $6.53 billion in revenue during the period.

Other chip companies such as Nvidia (NVDA) and Marvel (LMRV) shares fell on the back of the report.

AMD (AMD) will hold a conference call at 5 p.m. EST to discuss the results.

Last month, Wedbush Securities analyst Matt Bryson said that AMD (AMD) was his first choice in the field of semiconductors.


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