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AMD Beats Earnings Estimates, But Gives Lukewarm Forecast

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(Bloomberg) -- Advanced Micro Devices Inc., the second-largest maker of computer processors, topped third-quarter earnings estimates, even while giving a downbeat forecast for the current period.

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Profit was 67 cents a share in the third quarter, excluding some items, the Santa Clara, California-based company said in a statement Tuesday. Analysts had estimated 65 cents. Revenue was roughly in line with projections.

In the fourth quarter, sales will be $5.5 billion, plus or minus $300 million. Though that missed the average analyst estimate of about $5.9 billion, it represents an increase at a time when several of AMD’s peers are suffering contractions.

Gains in servers and robust demand for custom chips will help bolster AMD’s performance, the company said.

“We are confident that our leadership product portfolio, strong balance sheet, and ongoing growth opportunities in our data center and embedded businesses position us well to navigate the current market dynamics,” Chief Executive Officer Lisa Su said in the statement.

AMD had warned in October that its third-quarter performance would fall short of projections, and other chipmakers -- including Intel Corp. and Nvidia Corp. -- have provided gloomy outlooks. Facing a shaky economy and soaring inflation, consumers and corporations have turned away from buying computers.

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