AMD Surpasses Estimates – and Still Gets Punished

Advanced Micro Devices clearly exceeded expectations in the fourth quarter. Profit and revenue were significantly above consensus estimates, with net income jumping to $1.51 billion and revenue increasing by 34% year-over-year. However, the stock came under pressure in after-hours trading, losing about 8%. The Catch is in the Outlook The reason for the stock drop is less about the past quarter than the outlook going forward. For the first quarter, AMD is projecting revenue of around $9.8 billion, which is above the official market consensus but...