AMD Slashes Second-Quarter Guidance
NEW YORK (TheStreet) - AMD (AMD) cut its second-quarter guidance after market close on Monday, citing softer-than-expected sales in China and Europe along with weak consumer demand for PCs.
The no. 2 chip maker now expects its revenue to decrease 11% sequentially. Previously, AMD forecast a 3% increase, plus or minus 3%, sequentially.
"The lower preliminary revenue results are primarily due to business conditions that materialized late in the second quarter, specifically softer-than-expected channel sales in China and Europe as well as a weaker consumer buying environment impacting the company's Original Equipment Manufacturer (OEM) business," explained AMD, in a statement.
Investors balked at the slashed guidance, pushing AMD's shares down 4.8% to $5.35 in extended trading. AMD's shares closed down 2.2% during Monday's trading.
AMD, which is slated to report its second-quarter results after market close on July 19, expects its second-quarter gross margin to be approximately in line with its prior guidance. Speaking during AMD's first-quarter conference call, CFO Thomas Seifert said that he expects the company's gross margin to be flat to slightly up in the second quarter. During the first quarter, AMD reported revenue of $1.59 billion and a non-GAAP gross margin of 46%. The Sunnyvale, Calif.-based firm comfortably beat analysts' estimates in its first-quarter results, but was recently downgraded by Sterne Agee, which pointed to the slowing PC market. Rival Intel (INTC) was also busy on Monday, announcing plans to take a 15%, stake in ASML Holding N.V. (ASML) as part of a $4.1 billion deal which also includes research funding for the Dutch semiconductor specialist. --Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: tips@thestreet.com. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
