Applied Materials to buy back $3 billion in shares, sees $5.08 EPS by 2020
Shares of Applied Materials Inc. (AMAT) surged Wednesday on positive momentum in the chip sector and the chip materials company's long-term forecast and share buyback program. Applied Materials shares rallied 6.9% to $49.09, helped in part by Micron Technology Inc.'s (MU)strong forecast for memory chips (http://www.marketwatch.com/story/micron-reassures-investors-that-memory-chip-demand-remains-very-high-2017-09-26), and are up 52% year to date. Applied Materials forecast adjusted earnings of $5.08 a share in fiscal 2020 as Internet-of-things applications, Big Data and artificial intelligence drive computing demand. For the current year, analysts surveyed by FactSet expect fiscal earnings of $3.21 a share. The company also announced a new $3 billion share repurchase program in addition to the $995 million that remains on an earlier program.
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
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