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AMD beats Q3 estimates, outlook light

AMD reported better-than-expected third quarter financials thanks to increased sales in its computing and graphics segment. However, AMD’s outlook for the current quarter sent its shares down after hours.

The semiconductor maker posted a net income of $71 million, or 7 cents per share.

Non-GAAP earnings were 10 cents per share on revenue of $1.64 billion, up 26 percent year-over-year.

Wall Street was expecting AMD to post earnings of 8 cents per share on revenue of $1.51 billion.

“Strong customer adoption of our new high-performance products drove significant revenue growth and improved financial results from a year ago,” said AMD chief executive Lisa Su. “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.”

Here’s a closer breakdown of the company’s performance, by department:

  • Computing and graphics: Segment revenue increased 74 percent year-over-year to $819 million. AMD says the increase was driven by sales of its Radeon graphics and Ryzen desktop processors.
  • Enterprise, embedded and semi-custom: Segment revenue was essentially flat due to lower semi-custom SoC sales, AMD said.

For the current quarter, AMD expects revenue to decrease approximately 15 percent from Q3, plus or minus 3 percent. Analysts were expecting Q4 earnings of 4 cents a share on revenue of $1.34 billion.

AMD’s shares were down more than 8 percent in after-market trading.

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