AMD and Verizon Shares Decline After Earnings Reports
Advanced Micro Devices Inc. (NYSE:AMD) reported its results for the fourth quarter. Reported a loss of $177 million (24 cents per diluted share) in the quarter. The semiconductor company had net income of $375 million or 50 cents per share in the year earlier quarter. Revenue rose 2% to $1.69 billion from the year earlier quarter. AMD reported adjusted net income of 19 cents per share. By that measure, the company beat the mean estimate of 16 cents per share. Analysts were expecting revenue of $1.72 billion.
“AMD shipped more than 30 million APU’s in 2011, resulting in record annual notebook revenue,” said Rory Read, AMD president and CEO. “The unmatched combination of computing and graphics capabilities in our low-power ‘Brazos’ platform has made it our fastest ramping platform ever, paving the way for continued growth in key segments and geographies. Our server business has re-gained momentum, delivering two consecutive quarters of strong sequential growth.”
Competitors to Watch: Intel Corporation (NASDAQ:INTC), NVIDIA Corporation (NASDAQ:NVDA), MIPS Technologies, Inc. (NASDAQ:MIPS), Texas Instruments Inc. (NYSE:TXN), ARM Holdings plc (NASDAQ:ARMH), Microsoft Corporation (NASDAQ:MSFT), Intl. Business Machines Corp. (NYSE:IBM), Hewlett-Packard Company (NYSE:HPQ), Broadcom Corporation (NASDAQ:BRCM), and Apple Inc. (NASDAQ:AAPL).
Verizon Communications (NYSE:VZ) reported its results for the fourth quarter. Reported a loss of $212 million (71 cents per diluted share) in the quarter. The telecom services company had net income of $4.65 billion or 93 cents per share in the year earlier quarter. Revenue rose 7.7% to $28.44 billion from the year earlier quarter. VZ reported adjusted net income of 52 cents per share. By that measure, the company fell short of mean estimate of 53 cents per share. Analysts were expecting revenue of $28.39 billion.
“Verizon finished 2011 very strong, both in terms of revenue growth and by delivering an 18.2 percent total return to our shareholders for the full year, and the company has great momentum for 2012,” said Lowell McAdam, Verizon chairman, president and chief executive officer. “Verizon Wireless produced particularly strong growth in the fourth quarter. While that diluted wireless margins in the short term, it is good news for revenue and margin growth over the long term, particularly given our leadership in the rapidly developing 4G LTE ecosystem.”
Competitors to Watch: AT&T Inc. (NYSE:T), Sprint Nextel Corporation (NYSE:S), MetroPCS Communications, Inc. (NYSE:PCS), Vodafone Group Plc (NASDAQ:VOD), CenturyLink, Inc. (NYSE:CTL), NTELOS Holdings Corp. (NASDAQ:NTLS), Leap Wireless Intl., Inc. (NASDAQ:LEAP), Windstream Corporation (NASDAQ:WIN), and United States Cellular Corp. (NYSE:USM).
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