Should You Sell AMD After its Post-Earnings Plunge?
Shares of AMD (NASDAQ: AMD) recently plunged after the chipmaker's third quarter earnings sparked concerns about its future growth.
On the surface, the numbers looked solid. AMD's revenue rose 25% annually to $1.64 billion and beat estimates by $130 million, marking an acceleration from 18% sales growth in the second quarter and 23% growth in the prior year quarter. It also expects its revenue to rise 20% for the full year, compared to a prior forecast for "mid-to-high teens" growth.
On the bottom line, Its non-GAAP net income surged 307% to $110 million, or $0.10 per share, beating expectations by two cents. On a GAAP basis, its net income of $71 million, or $0.07 per share, marked a huge improvement from its loss of $0.50 in the prior year quarter. Its non-GAAP and GAAP margins both rose annually.
Source: Fool.com