Shares of chipmaker Advanced Micro Devices dropped almost 12 per cent in after-hours trading after it said it expects revenue in the current quarter to decline.
The California-based company on Tuesday projected a sequential drop in revenues of roughly 15 per cent for the fourth quarter — although it is expecting full-year 2017 revenue to rise more than 20 per cent compared to 2016, bumping up its previous guidance for an increase in the mid-to-high teens percentage.
The company’s shares are up 25.6 per cent year-to-date, after skyrocketing 295.12 per cent during 2016, according to Thomson Reuters data.
AMD reported third-quarter earnings on Tuesday that inched slightly ahead of analysts’ expectations. Revenue for the three months ending September 30 came in at $1.64bn, better than the $1.51bn that analysts surveyed by Thomson Reuters had expected. Net income was $71m, or 7 cents a share, versus a $406m loss, or 50 cents a share, during the same period last year.
Adjusted for special items, earnings per share came in at 10 cents, versus the 8 cents analysts had expected.