AMD, profits far below expectations – Macitynet.it
Really bad news yesterday for the IT market. After a few weeks of doubts and rumors, AMD has confirmed that its quarter will end substantially negative with profits well below expectations.
In a communication released yesterday, the company, which remains Intel's biggest competitor, estimates profits per share between 3 and 5 cents, while many analysts thought on average earnings of around 27 cents with peaks of even 32 cents according to some experts. The drop compared to the previous quarter will be 17% against the 10% estimated by the company.
To hit profits, according to AMD, sales below expectations but also prices that are under pressure from the fierce competition. In addition to this, the flash memory sector, where AMD is one of the world leaders, has been in sharp decline.
AMD underlines that despite this gloomy landscape, the sales results are still good, with record sales thresholds for both the Duron and Athlon processors that have allowed a leap forward in market share.
AMD stocks, which have already fallen by 3% on the open market, in the night on parallel markets have experienced a drop of 19%