Advanced Micro Devices, Inc. (NYSE:AMD) reported its earnings numbers for the three months through September this afternoon after the market closed. The company revealed that it earned $0.04 per share in the third quarter of the year on revenue totaling $1.46 billion. On today’s market, shares in the processor maker trended up to finish the day at $4.10.
The 26 analysts who were following Advanced Micro Devices, Inc. (NYSE:AMD) in the lead-up to this report were looking for earnings of 2 cents per share from the company. Revenue for the three months was expected to come in at $1.42 billion. In the third quarter of 2012, AMD lost 20 cents per share on revenue of $1.3 billion.
It’s not been an easy time for Advanced Micro Devices, Inc. (NYSE:AMD). The company lost money in every quarter of the last four and finished 2012 with a loss of 16 cents per share. Analysts are expecting the company to lose around 15 cents per share in 2013, but the numbers are expected to turn positive once again next year.
Shares in the processor manufacturer have been doing exceptionally well so far this year, despite the continued quarterly losses. After the earnings reports delivered by Advanced Micro Devices, Inc. (NYSE:AMD) in April and July beat consensus figures, the value of the company’s shares spiked. The company’s stock is currently trading at around 29 times its expected 2014 earnings.
AMD new strategy
Like its old competitor Intel Corporation (NASDAQ:INTC), Advanced Micro Devices, Inc. (NYSE:AMD) has been suffering from losses in the PC market. The company’ desktop processors and graphics chips have seen lower and lower volumes and selling prices as demand for laptops and PCs collapsed in the face of a mobile future.
Unlike Intel Corporation (NASDAQ:INTC), which is betting its future on servers and mobile, Advanced Micro Devices, Inc. (NYSE:AMD) is not going to spend its future in attempted competition for Android and Windows contracts. The company unveiled a new strategy at the end of September that offered an interesting take on the world processor market.
Advanced Micro Devices, Inc. (NYSE:AMD) is going to concentrate on embedded computers in devices used in industry, the military, consumer set top boxes and other applications. The company is betting its future on the success of those devices, though they are not represented in this afternoon’s earnings report.
AMD executives will hold an earnings call at 5:30 PM EST to discuss this earnings report.