Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading lower Wednesday after the company reported financial results and issued guidance with a midpoint below estimates. AMD also lowered its PC business outlook.
AMD said second-quarter revenue jumped 70% year-over-year to $6.55 billion, driven by strong execution and an expanded product portfolio. The revenue number beat the estimate of $6.53 billion, according to data from Benzinga Pro.
The chip company reported quarterly adjusted earnings of $1.05 per share, which beat the estimate of $1.03 per share.
“Each of our segments grew significantly year-over-year, led by higher sales of our data center and embedded products. We see continued growth in the back half of the year highlighted by our next generation 5nm product shipments and supported by our diversified business model,” said Lisa Su, chair and CEO of AMD.
AMD said it expects third-quarter revenue to be between $6.5 billion and $6.9 billion versus the estimate of $6.82 billion. The company expects full-year revenue to be between $26 billion and $26.6 billion versus the estimate of $26.18 billion.
On the earnings call, management said it lowered its PC business outlook from a high-single digits drop to a mid-teens drop.
Related Link: Why AMD Investors Are Pulling Back After Q2 Earnings
Analyst Assessment:
- Citigroup analyst Christopher Danely maintained AMD with a Neutral rating and lowered the price target from $110 to $96.
- Raymond James analyst Melissa Fairbanks maintained AMD with a Strong Buy rating and lowered the price target from $160 to $130.
AMD Price Action: AMD has a 52-week high of $152.42 and a 52-week low of $71.60.
The stock was down 5.93% at 93.40 at press time, according to Benzinga Pro.
Photo: courtesy of AMD.
