Applied materials beat revenue. stocks go up.
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Applied Materials is forecasting sales of $6.4 billion for the current quarter.
David Paul Morris/Bloomberg
Applied Materials reported better-than-expected earnings for the fiscal first quarter, which sent the stock higher in after-hours trading.
The chip equipment maker reported adjusted earnings of $2.03 per share for the January quarter, compared to the consensus estimate of $1.93 among Wall Street analysts tracked by
fact set
.
Revenue came in at $6.74 billion, slightly ahead of analysts’ expectations of $6.7 billion.
Applied Materials
(Ticker:
AMAT
) are also forecasting a range of potential earnings for the current quarter, with a median of $6.4 billion compared to the consensus estimate of $6.3 billion.
Applied Materials shares were up 1.3% to $116.90 in post-market trade after the release. The company’s major customers include
intel
(
INTC
) And
Taiwan semiconductor manufacturing
(TSM).
On the conference call, executives at the company said they expect their backlog to decline amid the mixed macro environment. They’ve seen order cancellations from memory chip customers and don’t think this area of the business is getting any better. Applied Materials also said it sees weakness in consumer markets — including PCs and smartphones. However, the long-term outlook for the semiconductor industry remains “very positive” given the increasing complexity of chips.
Over the last 12 months, Applied Materials stock is down 18% compared to a 14% decline for the stock
iShares Semiconductors
(SOXX) exchange traded fund tracking the performance of the ICE Semiconductor Index.
Write to Tae Kim at tae.kim@barrons.com
https://www.barrons.com/articles/applied-materials-earnings-780e46ae?siteid=yhoof2&yptr=yahoo Applied materials beat revenue. stocks go up.
