Applied Materials 1Q Profit Rises Despite Still-Lagging Semiconductor Business

By Ben Glickman

Applied Materials posted a higher fiscal first-quarter profit even as sales stalled off continued weakness in the semiconductor market.

The Santa Clara, Calif.-based chip-equipment maker posted a profit of $2.02 billion, or $2.41 a share, in the quarter ended Jan. 28, compared with $1.72 billion, or $2.02 a share, a year earlier. Analysts polled by FactSet expected per-share earnings of $1.92.

Stripping out certain one-time items, adjusted per-share earnings came to $2.13, ahead of the $1.90 forecast by analysts, according to FactSet.

Revenue was flat from a year ago at $6.71 billion, beating the $6.48 billion expected by analysts polled by FactSet.

Applied Materials' revenue in its semiconductor-systems business fell, offsetting higher sales in display and adjacent markets and applied global services.

The company forecast revenue of $6.5 billion, plus or minus $400 million, in the fiscal second quarter. Analysts polled by FactSet expect second-quarter revenue of $6.34 billion.

Applied Materials is expecting an adjusted per-share profit of $1.79 to $2.15 in the fiscal second quarter, compared with the $1.80 expected by analysts.

Write to Ben Glickman at ben.glickman@wsj.com

Corrections & Amplifications

This was corrected on February 16, 2024 because the original version incorrectly said revenue in Applied Materials' applied global services business decreased from a year ago in the fiscal first quarter.

(END) Dow Jones Newswires

February 15, 2024 16:29 ET (21:29 GMT)

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