• News

AMD issues Q4 2023 revenue guidance below analyst estimates

AMD is projecting lower earnings next financial quarter, partly due to lower sales from the gaming sector.

Ozzie Mejia

October 31, 2023 1:40 PM

AMD

1

AMD issued its Q3 2023 earnings report on Tuesday afternoon. The company's earnings are higher than expected for this quarter, but the outlook is less optimistic for the financial quarter ahead. AMD noted that it expects Q4 2023 revenue to come in at roughly $6.1 billion USD, which is about $300 million below analysts' estimates.

"For the fourth quarter of 2023, AMD expects revenue to be approximately $6.1 billion, plus or minus $300 million," reads the AMD Q3 2023 earnings report. "At the mid-point of the revenue range, this represents year-over-year growth of approximately 9% and sequential growth of approximately 5%. Non-GAAP gross margin is expected to be approximately 51.5%."

AMD EVP, CFO and Treasurer Jean Hu added that while Q4 2023 earnings will trend positively in most areas, the company is expecting lower sales in the gaming sector. This is being attributed to lower demand across embedded markets.

AMD's stock finished the trading day at $98.50 per share, up $2.32. However, in the moments following the release of the Q3 2023 earnings report, shares took a sharp dip by about $5 per share and is continuing to hover around the $94 mark in after-hours trading. (Update: Shares recovered from the after-hours drop in the moments following the Tuesday earnings call.)

We expect to learn more about AMD's recent financial quarter during the Q3 2023 earnings call, which will take place at 2:00 p.m. PT/5:00 p.m. ET. Keep it on Shacknews for the latest updates.

Ozzie Mejia

Senior Editor

Ozzie has been playing video games since picking up his first NES controller at age 5. He has been into games ever since, only briefly stepping away during his college years. But he was pulled back in after spending years in QA circles for both THQ and Activision, mostly spending time helping to push forward the Guitar Hero series at its peak. Ozzie has become a big fan of platformers, puzzle games, shooters, and RPGs, just to name a few genres, but he’s also a huge sucker for anything with a good, compelling narrative behind it. Because what are video games if you can't enjoy a good story with a fresh Cherry Coke?