AMD Stock Drops 4% on Weak Outlook

Tiger Newspress01-31

AMD stock dropped 4.1% in premarket trading Wednesday after the chip maker gave a disappointing revenue forecast for its March quarter.

The chip maker reported fourth-quarter adjusted earnings per share of 77 cents, in line with Wall Street’s consensus estimate of 77 cents, according to FactSet. Revenue came in at $6.2 billion, which was above analysts’ expectations of $6.13 billion.

But AMD said that first quarter revenue would be “approximately $5.4 billion, plus or minus $300 million.” Wall Street had estimated revenue of $5.73 billion for the quarter.

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