US shares are pointing to a rebound this morning, but the chipmaker Advanced Micro Devices (NASDAQ:AMD) is not set to join in the celebration.
Its shares plunged by 20% to $18.23 in the pre-market session after the Sunnyvale, California-based company issued a warning about softness in its graphics unit and its fourth-quarter outlook missed Wall Street estimates.
To be specific, CEO Lisa Su said weakness in AMD’s graphic segment could result in a sluggish fourth quarter as well as a slow start to next year. AMD now forecasts fourth-quarter revenue of roughly $1.45bn, which falls short of Wall Street’s estimates of $1.6bn.
The company’s net income came in at $102m in the third quarter, up from $61m in the year-ago period. Its revenue came in at $1.65 billion, which missed the Street’s estimate of $1.7billion.
Also on the receiving end of bad news in the pre-market session was Anheuser-Busch InBev SA (NYSE:BUD).
The famous beer maker saw its shares drop 9.5% before the bell to $74.45 after it slashed its dividend and reported weak profits in the third-quarter due to a slowdown in sales across Brazil, the US and South Africa.
For the third quarter, the Belgian group posted earnings of $956 million, down from $2.06 billion in the year-ago quarter. Its revenue also tumbled to $13.28 billion from $14.74 billion.
The yearly dividend for this fiscal year will now be €1.80 a share, Anheuser-Busch said.
On the list of stocks doing a bit better in the pre-market session was Noodles & Co (NASDAQ:NDLS), the casual restaurant based in Broomfield, Colorado, which specializes in noodle dishes.
Its shares added 13.3% to $10.79 and rebounded from slippage seen in yesterday’s session as investors took a brighter view of its results.
The restaurant chain posted third-quarter net income of $1.1 million, after posting a loss in the year-ago quarter.
On a per-share basis, the company said its profit on an adjusted basis came to $0.04, which met analysts’ estimates. Its revenue of $116.7 million also came in ahead of the consensus estimate of $113.8 million.
Elsewhere, shares of the messaging service Twitter (NYSE:TWTR) were also boasting a strong showing, rising 13% to $31.20. The rise came on this morning’s news that the social media company has reported its fourth consecutive profitable quarter.
Investors were willing to overlook a drop in its users due partly to the company’s purging of fake accounts and focus on its glowing quarterly performance.
Twitter’s monthly users dropped by 9 million in the third quarter to 326 million. But its net income ballooned to $789.2 million, or $0.21 per share on an adjusted basis, up from a loss of $21.1 million in the year-ago quarter.
Its revenue also climbed to $758 million, up from $590 million in the year-ago quarter. The company's profits were also boosted by a $683 million tax benefit in the quarter.
Wall Street had expected Twitter to earn $0.13 per share on revenue of $703.7 million.
Contact Ellen Kelleher at ellen@proactiveinvestors.com