Investing.com – AMD reported fourth-quarter that beat analysts’ expectations on Tuesday and revenue that topped forecasts.
The chipmaker reported earnings per share of $0.32 on revenue of $2.13 billion. Analysts polled by Investing.com forecast EPS of $0.31 on revenue of $2.11 billion.
That compared to EPS of $0.08 on revenue of $1.42 billion in the same period a year earlier. The company had reported EPS of $0.18 on revenue of $1.8 billion in the previous quarter.
But AMD cut top-line guidance for the first quarter, saying it predicts revenue of $1.75 billion to $1.85 billion.
Analysts were looking for $1.87 billion, according to S&P Capital IQ.
“Trading near the highest level in two decades, AMD stock is susceptible to correction before carrying on higher,” Investing.com analyst Haris Anwar said. “But the chipmaker is slowly expanding its market share and is well positioned to take advantage of lapses by Intel (NASDAQ:).”
“Any weakness in AMD’s stock value should be taken as a buying opportunity,” Anwar added.
“The majority of its gaming chip updates are set to hit the market this year, giving AMD an edge over competitors,” he said. “AMD’s smart move to partner with Taiwan Semiconductor Manufacturing means that it has access to the 7-nanometer server chips much ahead of Intel.”
AMD shares lost 3.44% to trade at $48.79 in after-hours trade following the report.
Intel earnings beat analysts’ expectations on Thursday, with fourth quarter EPS of $1.52 on revenue of $20.21 billion. Investing.com analysts expected EPS of $1.25 on revenue of $19.23 billion.
Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.