Applied Materials' stock climbs as company logs earnings beat, sees AI momentum
By Emily Bary
CEO expects 'continued outperformance as customers ramp next-generation chip technologies critical to AI' and the Internet of Things
Applied Materials Inc. delivered upbeat results and guidance Thursday afternoon, and its stock surged in the extended session.
The chip-equipment company logged fiscal-first quarter net income of $2.02 billion, or $2.41 a share, compared with $1.72 billion, or $2.02 a share, in the year-prior quarter.
On an adjusted basis, Applied Materials (AMAT) earned $2.13 a share, up from $2.03 a share a year before, while analysts tracked by FactSet were modeling $1.90 a share.
Net revenue inched lower to $6.71 billion from $6.74 billion, but came in above consensus forecasts, which were for $6.48 billion.
The stock rose 12% in after-hours action Thursday.
Read: Super Micro's stock has surged 900% in a year. Why BofA is making a 'buy' call.
"Our leadership positions at key semiconductor inflections support continued outperformance as customers ramp next-generation chip technologies critical to AI and IoT [Internet of Things] over the next several years," Chief Executive Gary Dickerson said in a release.
The company expects $6.1 billion to $6.9 billion in revenue for the ongoing quarter, with the midpoint of that forecast - $6.5 billion - beating out the $6.34 billion FactSet consensus.
Applied Materials also models $1.79 to $2.15 in adjusted earnings per share, the midpoint of which is $1.97. Analysts had been modeling $1.80.
See also: Nvidia discloses positions in SoundHound AI, Arm - and these other stocks
-Emily Bary
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02-15-24 2012ET
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