Boston, MA 10/21/2013 (wallstreetpr) – Advanced Micro Devices, Inc. (NYSE:AMD) has surpassed expectations for its quarterly earnings report with revenue rising to $1.46 billion beating the $1.416 billion that was projected. This was still not enough to prevent a slide in stock price and even the fact that AMD has gained significant ground on its industry rivals with its supply of processors for video game consoles like the Xbox One and the PlayStation 4 was not enough of a boost.
The supply of processor chips for personal computers has remained AMDs core market and they are currently have a rivalry with the much bigger Intel Corp. in this segment of the market. The third quarter results for each company has been contrasting for while Intel has increased revenue from their computer processors by 3.5%, AMD saw a 6% drop for the same period. More and more customers are moving away from using desktop computers and laptops in favor of more popular hand held devices like tablets and this has had a significant impact on AMD’s performance. Stock price fell 7% down to $3.81, after gaining 12% last week but shareholders and investors have remained hopeful that the income from AMD’s rapidly expanding gaming console division will help to give a push to revenues and help the struggling company return to its days of profitability.
It is difficult to project how well gaming console manufacturers like Microsoft and Sony will manage to sell their newest consoles devices when they are released in November because the consumer preference for tablets has spilled over into the gaming industry and an increasing number of people are playing games on their tablets instead of on game consoles. On the one hand there are analysts who expect that the trends in the market will translate to slow sales while on the other certain analysts expect sales to boom because these are the first new consoles being released in years and there is a lot of anticipation in the marketplace.
Based on this quarter’s earning report, AMD expects that in the 4Q revenue will be at about $1.533 which would be an increase of about 5%.