AMD forecasts 4Q revenue decline, shares fall

Technology Reuters

(Reuters)

Advanced Micro Devices Inc (AMD) forecast a revenue decline for the current quarter, after six straight quarters of revenue rises, sending its shares down nearly 11 percent in after-market trading.

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AMD said it expects fourth-quarter revenue to fall about 15 percent sequentially. This implies a revenue of about $1.39 billion, according to Reuters calculations.

"AMD has underperformed other semi stocks in this white-hot market and has headwinds with competition from Intel and Nvidia among other worries," Daniel Ives, chief strategy officer at GBH Insights said.

However, the company reported a 25.7 percent rise in third-quarter revenue, aided by a slew of launches such as the Epyc processors for servers and a new range of Ryzen desktop processors.

AMD said sales in its graphics and computing business, which makes processors for servers and gaming consoles, rose 73.5 percent to $819 million in the reported quarter.

The company reported a net income of $71 million, or 7 cents per share, in the quarter ended Sept. 30, compared with a loss of $406 million, or 50 cents per share, a year earlier.

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Excluding items, the company earned 10 cents per share. Revenue rose to $1.64 billion from $1.31 billion.

Analysts on average were expecting a profit of 8 cents per share on revenue of $1.51 billion.

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