The chip company AMD published its business figures for the third quarter of 2024, surpassing analysts' revenue expectations but missing the forecasted earnings per share (EPS). While revenue increased from $5.80 billion in the same period last year to $6.819 billion, meeting the expectations of $6.71 billion, AMD achieved an EPS of only $0.47 compared to the expected $0.923. Compared to the previous year, when the company recorded a profit of $0.180 per share, there is a significant improvement, but the jump falls short of investors' expectations.
The discrepancy between revenue growth and profit development has a direct impact on AMD's stock price. In after-hours trading on the NASDAQ, the stock temporarily fell by 5.03 percent to $157.92. Analysts attribute the decline to disappointing EPS figures, which do not reflect the expected profitability despite the increase in revenue.
The significant increase in sales highlights the increased demand for AMD's products, particularly in the area of semiconductors and processors used in various high-tech applications. Nevertheless, the profits falling below expectations suggest increased costs or other operational challenges that the company is currently facing.
Compared to the same quarter of the previous year, AMD shows positive development in earnings per share, but the difference from analysts' expectations remains significant. This could unsettle investors and impact confidence in the company's short-term profitability, despite solid revenue performance.
The current figures underscore the complex balance between revenue growth and profit optimization, which is essential for technology companies like AMD. While revenue growth points to a strong market position and increasing demand, profit margins need to be improved to meet investor expectations and ensure sustainable growth.
