Modern micro devices (NASDAQ:AMD) Stocks fell 6% in after-hours trading on Tuesday, when the semiconductor company offered third-quarter guidance that fell short of expectations, even as it released second-quarter results that beat estimates.
After the close of trading, AMD (AMD) said it expected revenue of between $6.5 billion and $6.9 billion for its third quarter, while analysts had expected $6.81 billion. Looking at the full year, AMD (AMD) said revenue is likely to be between $26 billion and $26.6 billion.
That outlook took some of the luster out of the semiconductor giant’s strong second-quarter earnings report.
For the period ended June 25, AMD (AMD) said it earned $1.05 per share on revenue of $6.55 billion, helped by 83% growth in data center sales.
AMD (AMD) also saw strength in the company’s customer segment, which includes PC processors, as revenue rose 25% year over year to $2.2 billion. Gaming revenue grew 32% year over year to $1.7 billion, and embedded segment revenue grew 2,228% year over year thanks to the acquisition of Xilinx.
A consensus of analysts expected AMD (AMD) to earn $1.04 per share on sales of $6.53 billion during the period.
Other chip companies such as Nvidia (NVDA) and Marvell (MRVL) fell on the report.
AMD (AMD) will host a conference call at 5:00 p.m. EST to discuss the results.
Last month, Wedbush Securities analyst Matt Bryson said AMD (AMD) was his top pick in the semiconductor space.
https://seekingalpha.com/news/3864564–advanced-icro-devices-falls-as-guidance-comes-in-light-despite-strong-q2-results?utm_source=feed_news_all&utm_medium=referral AMD falls as light guidance outweighs strong Q2 results