Advanced Micro Devices Inc. (NYSE: AMD) moved after the company beat earnings expectations. The distant #2 PC processor posted earnings of -$0.05 in non-GAAP EPS as revenues rose over 40% to $1.65 billion in revenues. Thomson Reuters had estimates at -$0.18 EPS and $1.49 billion in revenues. This figure excludes a monumental figure of a $1.57 per share based upon the favorable impact from a legal settlement with Intel Corporation (NASDAQ: INTC). Fourth quarter 2009 gross margin was 45% vs the 42.4% consensus, compared with 42% in the prior quarter.
AMD sees first quarter revenues down sequentially, but that was already expected as the calendar Q4 is always a strong period. The company noted that it has now completed the transition to a fabless model with a stronger balance sheet and with its Intel fight behind it.
It seems that traders are endorsing these numbers. Shares closed up 1.3% at $8.99 today. Shares rose initially on the news, but we have shares down close to 3% at $8.75 right before 5:00 PM EST in the after-hours reaction.
JON C. OGG
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