Advanced Micro Devices gave investors reason to rejoice on Tuesday when it announced earnings exceeding expectations and said it would sell more chips with a higher profit than expected.
AMD stock (ticker: AMD) rebounded in the extended session, advancing nearly 10% after the results were released.
AMD exceeded investor expectations for the second quarter which ended in June, posting net income of $ 157 million, or 13 cents per share, compared to earnings of $ 35 million, or 3 cents per share, one year ago. Adjusted for stock compensation, AMD reported earnings of 18 cents per share. The company posted total revenue of $ 1.93 billion.
Wall Street had forecast adjusted earnings of 16 cents per share on sales of $ 1.86 billion.
“We had strong second quarter results with record sales of laptops and server processors as Ryzen and Epyc revenue more than doubled from a year ago,” said Lisa Su, CEO of AMD. “Despite some macroeconomic uncertainty, we are raising our full-year revenue outlook as we enter our next phase of growth driven by the acceleration of our business in multiple markets.”
AMD said it now expects third-quarter sales of $ 2.45 billion to $ 2.65 billion. Selling analysts had previously forecast third-quarter sales of $ 2.31 billion.
AMD stock took advantage of Intel’s revelation last week that it was delaying its manufacturing process by seven nanometers by six months and got another boost after AMD announced a new lineup of chips. AMD shares are up 35% this month, with the S&P 500 Index gaining 5.4%. The PHLX Semiconductor index rose 6% last month.
Corrections et amplifications: AMD reported profits of $ 35 million, or 3 cents per share, in the quarter ending June 2019. An earlier version of this article incorrectly reported net income and earnings per share for the period of the year. ‘last year.
Write to Max A. Cherney at [email protected]