Advanced Micro Devices Inc. (NYSE:AMD) shares plunged further again after it warned that it is expecting fourth quarter revenue to fall about 12-18% from the third quarter.
For the fourth quarter, AMD estimates revenue to decline 12% to 18% sequentially, which works out to US$1.34bn to US$1.44bn.
The market consensus for the fourth quarter is for US$1.34bn.
The news of its expected first revenue slump after seven quarters, overshadowed its market-topping third quarter results, which saw its shares slip 11% in after-hours trading on Tuesday.
In premarket trade Wednesday, its shares were down 9.19% at US$12.94. Later, in the regular session, the shares tanked 11.58% to US$12.60 each.
Highest quarterly revenue since 2011 Q4
The chip maker said in a statement on Tuesday that revenues in the quarter surged 26% and profits, boosted by sales of new products that seemed to attract a new generation of investors, such as its Ryzen chip for desktops and its Radeon graphics chips.
“This is our highest quarterly revenue since the fourth quarter of 2011,” Devinder Kumar, AMD Chief Financial Officer, said in Tuesday’s conference call.
The company reported third-quarter net income of US$71mln, or 7 US cents a share, compared with a loss of US$406mln, or 50 US cents a share, in the year-ago period.
Adjusted earnings were 10 US cents a share. Revenue rose to US$1.64bn from US$1.31bn in the year-ago period.
The market consensus was for 8 US cents a share on revenue of US$1.51bn.