Poor Finances Cause AMD Shares to Fall

Just as AMD said it feared, its final sales results for the second quarter of the year (2012) proved less encouraging than predicted, and the consequences are already showing: AMD's shares have fallen by 2.3%.

AMD actually expected a revenue rise of 3%, instead of the drop of 11% that it was forced to disclose.

Unfortunately, that wasn't the only thing that caused analysts' internal alarms to start blaring, Fudzilla reports.

The second factor was the inventory growth of around 42%, which can only mean disappointing sales.

It doesn't help that the forecast for the third quarter is further decline, even if it is just 1%. Chances are the Sunnyvale, California-based company will end up being unfavorably surprised again.

AMD attributed some of the blame for the outcome on the general slowdown of the industry, as caused by the weak worldwide economy. Analysts, and the stock market, obviously don't think that's all there is to it.

Via: Poor Finances Cause AMD Shares to Fall