Advanced Micro Devices (NASDAQ:AMD) is set to deliver its third-quarter results after the close of business on Tuesday, and the chipmaker is probably hoping it has already gotten the worst of its bad news out of the road
Analysts estimate that AMD (AMD) will report a profit of 70 cents per share on $5.65B in revenue for the quarter that ended in September. Almost a month ago, AMD ( AMD ) bit the bullet and released preliminary third-quarter results, and the impact was uniformly negative.
AMD ( AMD ) said it expects third-quarter revenue to come in at $5.6B, which at the time was well below analyst estimates of $5.71. CEO Lisa Su said AMD’s ( AMD ) results were affected by a PC market that “weakened significantly in the quarter,” and that “macroeconomic conditions drove lower-than-expected PC demand and a significant inventory correction across the PC supply chain .”
Just days after Su’s comments, technology research firm IDC released data showing that, except for Apple ( AAPL ), every major PC maker saw shipments decline during the third quarter of the year.
And on Monday, one day before AMD’s ( AMD ) report, Northland Capital Markets analyst Gus Richard cut his rating on AMD ( AMD ) shares to market outperform due to factors such as the semiconductor market in China.