AMD slumps as weak outlook outweighs strong Q1 results
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AMD (NASDAQ:AMD) shares fell more than 4% in extended-hours trading on Tuesday as weaker-than-anticipated guidance from the semiconductor company outweighed strong first-quarter results.
Looking ahead, AMD (AMD) expects second-quarter revenue to be around $5.3B, plus or minus $300M, with adjusted gross margins around 50%. Analysts were expecting around $5.51B in revenue and gross margins of 50.4%.
In addition, AMD (AMD) said it will keep its operating expenses flat for the rest of the year until demand improves.
For the period ending April 1, AMD (AMD) earned an adjusted 60 cents per share on $5.4B in revenue, as its data center and embedded segments continued to show strong growth.
Research and development costs during the period were $1.4B.
A consensus of analysts were expecting AMD (AMD) to earn 56 cents per share on $5.31B in revenue.
The company will hold a conference call at 5 p.m. EST to discuss the results.
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