Lisa Su, CEO, AMD
Scott Mlyn | CNBC
AMD shares rose as much as 10% in extended trading on Tuesday after the company improved its revenue guidance for the current year as part of its second-quarter earnings results.
This is how the company did it:
- Profits: Adjusted 13 cents a share, compared to 16 cents a share as expected by analysts, according to Refinitiv.
- Income: $ 1.93 billion, compared to $ 1.86 billion as expected by analysts, according to Refinitiv.
The chipmaker’s revenues grew 26% year-over-year in the quarter, which ended June 27, according to a statement. Revenue from the computing and graphics category that includes chips and graphics processing units for desktop and notebook PCs reached $ 1.37 billion, up 45%, and met the expectations of analysts surveyed by FactSet.
The company’s guidance for the fiscal third quarter was $ 2.55 billion in revenue, plus or minus $ 100 million. Analysts surveyed by Refinitiv had been looking for $ 2.32 billion in revenue for the quarter.
AMD now expects 32% revenue growth for the year, up from 25% growth the company predicted in April. Analysts surveyed by Refinitiv expected growth of 25%.
The results come days after competitor Intel said it was delaying the launch of 7-nanometer transistor products until 2022 or 2023. AMD already sells 7-nanometer chips. Last Friday, after Intel made its announcement, AMD shares rose nearly 17%, while Intel fell more than 16%. Despite the out-of-hours movement, AMD shares have risen 47% since the start of the year.
Executives will discuss the results with analysts in a conference call that will begin at 5:30 pm ET.
This is breaking news. Please check for updates.
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