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.
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.
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.