Share Holders Had Higher Hopes for AMD
On Tuesday AMD (NYSE: AMD) reported sales of $1.523 billion and net income of $76 million, amounting to $0.18 per diluted share, for the quarter ended September 25, 2005. Even though sales are up, the stock dropped $2.04, or 8.42%, to $21.96 this morning on news of the quarter results. Looks like stock holders are unhappy with the $66 million in bonuses that AMD paid out!
The world’s second-largest chipmaker walked past estimates, as strong microprocessor sales helped to boost revenue 23% and earnings nearly 73%. AMD earned $76 million, or 18 cents a share, on sales of $1.52 billion, up from $44 million, or 12 cents a share, on sales of $1.24 billion a year earlier. It’s possible the margins should have been even higher, Peruri said. One factor that could have weighed on them was $66 million in bonuses that AMD paid out during the quarter, up dramatically from $16 million in the previous quarter and $17 million in the same period a year ago. “With the revenue number they came up with, it’s possible people were hoping for a larger EPS,” Peruri said.
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