Advanced Micro Devices, Inc. AMD reported a third-quarter sales miss.

Adjusted earnings came in at 18 cents per share, in line with consensus estimates. This is a 38.46% increase over earnings of 13 per share from the same period last year. Sales came in at $1.8 billion, missing estimates by $10 million. This is an 8.89% increase over sales of $1.653 billion in the same period last year.

The company sees fourth-quarter sales of around $2.1 billion.

"Our first full quarter of 7nm Ryzen, Radeon and EPYC processor sales drove our highest quarterly revenue since 2005, our highest quarterly gross margin since 2012 and a significant increase in net income year-over-year," said Dr. Lisa Su, AMD president, and CEO. "I am extremely pleased with our progress as we have the strongest product portfolio in our history, significant customer momentum and a leadership product roadmap for 2020 and beyond."

Highlights

• Revenue was up 9% year-over-year
• Gross margin was 43%, up 3% year-over-year
• Operating income was $186 million, up from $150 million a year ago

AMD shares initially traded higher by 2% in Tuesday's after-hours session, but eventually turned red and fell more than 3%. The stock closed down 1.96% at $33.03 per share.