AMD Reports Preliminary Q3 Revenue Below Outlook; Stock Down 4%

(RTTNews) - Advanced Micro Devices, Inc. (AMD) Thursday reported preliminary third-quarter revenues that were below its outlook, hurt largely by weaker Client segment revenues. Following the news, shares of the company slipped nearly 4% in after-hours.

The company reported preliminary third-quarter revenue of about $5.6 billion, an increase of 29% year-over-year. AMD previously expected revenue to increase around 55% year-over-year to $6.7 billion, plus or minus $200 million.

The company said the preliminary results reflect lower than expected Client segment revenue resulting from reduced processor shipments due to a weaker than expected PC market and significant inventory correction actions across the PC supply chain.

"The PC market weakened significantly in the quarter," said AMD Chair and CEO Dr. Lisa Su. "While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain. As we navigate the current market conditions, we are pleased with the performance of our Data Center, Embedded, and Gaming segments and the strength of our diversified business model and balance sheet. We remain focused on delivering our leadership product roadmap and look forward to launching our next-generation 5nm data center and graphics products later this quarter."

AMD closed Thursday's trading at $67.85, down $0.09 or 0.13%, on the Nasdaq. The stock further slipped $2.40 or 3.54% in the after-hours trading.