AMD Q3 results top estimates, but revenue guidance falls short
Investing.com – Advanced Micro Devices reported Tuesday better-than-expected third-quarter results, but the chipmaker also delivered softer current-quarter guidance as slowing sales in its gaming sector and softer demand in embedded markets are expected to weigh.
Advanced Micro Devices (NASDAQ:AMD) shares fell more than 4% in after-hours trade following the report.
AMD reported adjusted EPS $0.70 on revenue of $5.80 billion. Analysts polled by Investing.com anticipated EPS of $0.68 cents on revenue of $5.7 billion.
The data center business reported flat revenue growth at $1.6B for Q3 year-over-year, as growth in 4th Gen AMD EPYC chip sales was offset by a decline in adaptive System-on-Chip data center products.
Gaming segment revenue, meanwhile, fell 8% to $1.5B in Q3 from a year earlier, while revenue in its embedded segment, which includes chips for networking or cars, was down 5% to $1.2B.
Looking ahead, the company guided fiscal fourth-quarter revenue of $6.1B, give or take $300 million, an increase of about 9% year-on-year. That compared with estimates for $6.4B.
«We expect to see strong growth in Data Center and continued momentum in Client, partially offset by lower sales in the Gaming segment and additional softening of demand in the embedded markets,» AMD EVP, CFO and Treasurer Jean Hu said on Tuesday.
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