AMD's second quarter results were on target, but the company's outlook was light.
The chipmaker, which has garnered interest as it competes better against larger rivals such as Intel and Nvidia, reported second quarter net income[1] of $35 million, or 3 cents a share, on revenue of $1.53 billion, down 13% from a year ago. Adjusted earnings for AMD in the second quarter came in at 8 cents a share.
Wall Street was expecting AMD to report second quarter revenue[2] of $1.52 billion with adjusted earnings of 8 cents a share. In the first quarter, AMD's sales were down from a year ago, but better than expected.
But the outlook for AMD fell short given that shares have run up into the earnings report. AMD projected third quarter revenue of about $1.8 billion, give or take $50 million. Those sales would be up 9% from a year ago with strong demand for Ryzen, EPYC and Radeon demand.
For the third quarter, analysts were expecting AMD to report revenue of $1.95 billion with adjusted earnings of 23 cents a share.
AMD said it expects 2019 revenue to increase at a mid-single digit percent rate.
During the quarter, AMD launched its client and graphics processors and introduced its new gaming infrastructure.
By unit, AMD said that its computing and graphics group delivered second quarter sales of $940 million, down 13% from a year ago. Graphics chips saw lower channel sales with stronger demand for PCs and data center. Enterprise, embedded and semi-custom unit revenue was $591 million, down 12% from a year ago.
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References
- ^ second quarter net income (ir.amd.com)
- ^ second quarter