Advanced Micro Devices, Inc (NASDAQ: NASDAQ:AMD)
Even though Advanced Micro Devices reported better-than-expected top and bottom-line earnings and revenue on Tuesday October 24, 2017, shares plummeted in the aftermarket trading session once the earnings announcements were laid out.
Shares, which have traded in a 52-week range from a low of $6.22 to a high of $15.65 sold off sharply just after the report hit the newswires. Shares dropped hard and closed down -10.95% at $12.69.
Shares had closed the regular session at $14.25. Shares have seen a steady increase by about 25% since the beginning of 2017 coming into today.
Earning Numbers
The company reported earnings of $0.10 per share on revenues of about 1.65 billion dollars. Analysts had been expecting $0.08 per share on revenues that were expected to come in much lower at $1.51 billion dollars.
These actual numbers are not what hurt the company in the aftermarket. What did affect the after market trading action was that the company revised the upcoming quarterly revenues, which are now expected to decrease by about 15%.
Company Comments
Dr Lisa Su, AMD president and CEO had this to say on the conference call:
“Strong customer adoption of our new high-performance products drove significant revenue growth and improved financial results from a year ago. Our third quarter new product introductions and financial execution mark another important milestone as we establish AMD as a premier growth company in the technology industry.”
Advanced Micro Devices Chart
The above price chart shows the intraday Tuesday trdning session on the left and the aftermarket trading session on the right. It is easy for the viewer to see that on the right just after the earnings were announced shares dropped precipitously from $14 to about $12. Then based for a little while until the 8 p.m. close.
Company Profile
Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. Its primarily offers x86 microprocessors as an accelerated processing unit (APU), chipsets, discrete graphics processing units (GPUs), and professional graphics; and server and embedded processors, and semi-custom System-on-Chip (SoC) products and technology for game consoles.
The company provides x86 microprocessors for desktop PCs under the AMD A-Series, AMD E-Series, AMD FX CPU, AMD Athlon CPU and APU, AMD Sempron APU and CPU, and AMD Pro A-Series APU brands; and microprocessors for notebook and 2-in-1s under the AMD A-Series, AMD E-Series, AMD C-Series, AMD Z-Series, AMD FX APU, AMD Phenom, AMD Athlon CPU and APU, AMD Turion, and AMD Sempron APU and CPU brand names.
It also offers chipsets with and without integrated graphics features for desktop, notebook PCs, and servers, as well as controller hub-based chipsets for its APUs under the AMD brand; and AMD PRO mobile and desktop PC solutions. In addition, the company provides discrete GPUs for desktop and notebook PCs under the AMD Radeon brand; professional graphics products under the AMD FirePro brand name; and customer-specific solutions based on AMD’s CPU, GPU, and multi-media technologies.
Further, it offers microprocessors for server platforms under the AMD Opteron; embedded processor solutions for interactive digital signage, casino gaming, and medical imaging under the AMD Opteron, AMD Athlon, AMD Sempron, AMD Geode, AMD R-Series, and G-Series brand names; and semi-custom SoC products that power the Sony Playstation 4, Microsoft Xbox One, and Xbox One S game consoles.
The company sells its products through its direct sales force, independent distributors, and sales representatives. It primarily serves original equipment manufacturers, original design manufacturers, system builders, and independent distributors. Advanced Micro Devices, Inc. was founded in 1969 and is headquartered in Sunnyvale, California.