AMD Q3 Earnings: Shares Fall as Q4 Outlook Disappoints
Tuesday, Oct 29, 2024 4:31 pm ET
1min read Advanced Micro Devices (AMD) reported its third-quarter financial results, with shares falling as the Q4 outlook disappointed investors. The chipmaker reported strong earnings, but the revenue outlook for the fourth quarter was on the downbeat side.
AMD's net income more than doubled, reaching $771 million, or 47 cents a share, compared to $299 million, or 18 cents a share, in the same period last year. Excluding non-recurring items, adjusted EPS rose to 92 cents from 70 cents and matched the FactSet consensus of 92 cents. Revenue grew 17.6% to $6.82 billion, above the FactSet consensus of $6.71 billion, as data center revenue climbed 122.1% to $3.55 billion, topping the FactSet consensus of $3.49 billion.
However, AMD's stock dropped 5% in recent after-hours trading, as the revenue outlook was on the downbeat side. The company expects fourth-quarter revenue of $7.5 billion, plus or minus $300 million, compared to the current FactSet consensus of $7.55 billion.
The Q4 outlook disappointed investors, despite the strong earnings report. The company's guidance for Q4 gross margin was also lower than expected, coming in at 54% compared to the 54.5% consensus estimate. This may have contributed to the stock's decline, as investors had been hoping for a more optimistic outlook.
In conclusion, AMD reported strong earnings for the third quarter, but the Q4 outlook disappointed investors, leading to a decline in the stock price. The company's guidance for Q4 gross margin was also lower than expected, which may have contributed to the stock's decline. As AMD continues to navigate the competitive semiconductor landscape, investors will be watching for further updates on the company's performance and outlook.
AMD's net income more than doubled, reaching $771 million, or 47 cents a share, compared to $299 million, or 18 cents a share, in the same period last year. Excluding non-recurring items, adjusted EPS rose to 92 cents from 70 cents and matched the FactSet consensus of 92 cents. Revenue grew 17.6% to $6.82 billion, above the FactSet consensus of $6.71 billion, as data center revenue climbed 122.1% to $3.55 billion, topping the FactSet consensus of $3.49 billion.
However, AMD's stock dropped 5% in recent after-hours trading, as the revenue outlook was on the downbeat side. The company expects fourth-quarter revenue of $7.5 billion, plus or minus $300 million, compared to the current FactSet consensus of $7.55 billion.
The Q4 outlook disappointed investors, despite the strong earnings report. The company's guidance for Q4 gross margin was also lower than expected, coming in at 54% compared to the 54.5% consensus estimate. This may have contributed to the stock's decline, as investors had been hoping for a more optimistic outlook.
In conclusion, AMD reported strong earnings for the third quarter, but the Q4 outlook disappointed investors, leading to a decline in the stock price. The company's guidance for Q4 gross margin was also lower than expected, which may have contributed to the stock's decline. As AMD continues to navigate the competitive semiconductor landscape, investors will be watching for further updates on the company's performance and outlook.
