Advanced Micro Devices Inc. shares declined in the extended session on Tuesday after the chipmaker reported earnings that met expectations due to tariff restrictions, but unveiled a revenue outlook that was below Wall's consensus on weaker-than-expected console sales Street lay.
AMD, + 1.16%
Stocks that dropped more than 5% in hours recently dropped 3%, down 1.2% to 33 in the regular session, $ 87 had risen. In comparison, the S & P 500 index
fell 0.3%, the technically advanced Nasdaq Composite Index
fell 0.2% and the PHLX Semiconductor Index
decreased by 0.3% in the regular session.
AMD expects revenue of $ 1.75 billion to $ 1.85 billion in the third quarter, while analysts forecast $ 1.94 billion in revenue for FactSet.
Read: Microsoft kills it in all companies with one exception.
"The sequential and annual growth is expected to be driven by rising EPYC and Radeon product sales, which will be partially offset by lower sales than expected semi-custom sales," said Devinder Kumar, AMD's chief financial officer, at the conference call. Chips for gaming consoles fall into the semicustom sales of AMD.
"AMD met expectations for the quarter, but lowered its guidance due to weakness in the game console market," said Pat Moorhead, principal analyst at Moor Insights and Strategy, via email.
"I think this softness is driven by consumers who are enthusiastic about Microsoft's next generation consoles
(Scarlett) and Sony (PS5) and delay purchases, "said Moorhead. "Supporting this, console sales by Microsoft and Sony have also been declining lately."
For more: Microsoft kills it in all companies except one
. "In the second quarter, we have stopped delivering customers that have been added to the list of US companies," said AMD CEO Lisa Su in the teleconference. "Although we remain cautious in the face of changing circumstances, the impact so far has been limited and by the Balanced growth in other areas of our business. "
The Company achieved net income of $ 35 million, or $ 3, in the second quarter, compared to $ 116 million, or 11 cents per share, for the same period a year ago, and adjusted earnings were 8 cents per share, and revenue decreased to $ 1.53 billion from $ 1.76 billion in the same quarter a year ago.
Analysts surveyed by FactSet had a projected profit of 8 cents per share on revenue of $ 1.52 billion. Dollars.