Shares of semiconductor maker Advanced Micro Devices (AMD) - Get Report fell after hours Tuesday after the company reported first quarter results that topped estimates, but lowered its full year outlook.
The company reported first quarter earnings of 18 cents per share on revenue of $1.79 billion. Analysts were expecting the company to report earnings of 18 cents per share on revenue of $1.78 billion.
However, the company also said that it expects weaker demand in the second half of the year due to the coronavirus pandemic, with revenue expected to grow between 20% and 30% for the year. That estimate is down from its previous expectation of 28% to 30% revenue growth year over year. And adjusted gross margin is now expected to be 44% vs. AMD's previous expectation of 45%.
AMD shares fell 4.5% after hours to $53.00 on Tuesday.
"We remain focused on strong business execution while ensuring the safety of our employees and supporting our customers, partners and communities. Our strategy and long-term growth plans are unchanged," said CEO Dr. Lisa Su in a press release.
Revenue decreased by 16% on a quarter to quarter basis. On a year over year basis, revenue was up 40% driven by higher returns in the company's computing and graphics segments.
The company recently detailed plans to drive growth through its high-performance computing and graphics chips, as well as aggressive technology investments.