AMD's earnings reports are to be released on July 20, 2006 but in the meantime their management has already announced certain warnings, including the lowering of their sales forecasts for the second quarter and rest of fiscal 2006. Together with this, their reason was quite simple "slower-than-expected" sales, as Intel continues slashing their prices to remain more competitive.
...more on the details
AMD lowered their sales forecasts by over US$120 million to US$1.22 billion, which was approximately a 9% decline from their original guidance provided. Of course, second-quarter sales also will falls short of analysts' expectation of estimates at $1.31 billion. Analysts have already lowered their earnings estimates on AMD after the announcements, cutting EPS per share to US$0.21. WallStreet was expecting US$0.28 cents EPS for the second-quarter and US$1.46 EPS for 2006.
Goes to show how volatile the industry is. After Dell's decision to go with AMD for certain lines of processors, Intel has been cutting prices like crazy, almost enough to gain back losses in market share. Intel's earnings should be pretty interesting as well.