AMD Cuts 2Q Revenue Forecast, Shares Fall

By ColumnsFOXBusiness

Shares of computer chip maker Advanced Micro Devices (NYSE:AMD) were down in after-hours trading Monday after the company said second-quarter revenue would fall by 11% from the prior quarter.

The company, which cited “softer-than-expected” channel sales in China and Europe, had earlier projected quarterly revenues for the period ended June 30 to increase by as much as 6% from the first three months of the year.

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The stock fell more than 6% to $5.26 after closing down 13 cents for the day.

“The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the company's Original Equipment Manufacturer (OEM) business,” the company said in a statement.

AMD said second-quarter gross margin is expected to remain in-line with prior guidance.

AMD will report its results after markets close on July 19.