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What: Shares of Advanced Micro Devices (NASDAQ:AMD) have jumped today by upwards of 11% after the company reported better-than-expected earnings.
So what: Revenue in the fourth quarter was $1.2 billion, which was a decline of 32% relative to a year ago. That also translated into an adjusted net loss of $102 million, or $0.14 per share. That top-line result was right on target with the consensus estimate, but the bottom line beat the $0.21 per share loss that the Street was expecting.
Now what: That bottom line beat shows the company is making progress with cost reductions at the same time it tries to diversify away from the struggling PC market. AMD is working on low-power offerings and semi-custom chips, among other initiatives. Investor expectations may have been low after chief rival Intel reported lackluster results recently, causing AMD shares to get crushed on fears it would follow suit. Shareholders are pleasantly surprised that the company didn't.
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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool recommends Intel. The Motley Fool owns shares of Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.