Applied Materials' stock dips despite upbeat earnings
By Emily Bary
Chip-equipment company's revenue outlook exceeds expectations at the midpoint
Despite better-than-expected results for its latest quarter, Applied Materials Inc. shares slipped lower in Thursday's extended session.
The chip-equipment company reported fiscal second-quarter net income of $1.72 billion, or $2.06, up from $1.58 billion, or $1.86 a share, in the year-earlier period. After adjustments, Applied Materials (AMAT) logged earnings per share of $2.09, while analysts tracked by FactSet were expecting $1.99.
Revenue came in at $6.65 billion, essentially flat with the $6.63 billion that the company posted a year before, whereas the FactSet consensus was for $6.54 billion.
"Applied Materials has the most enabling portfolio of materials engineering technologies for chips that underpin tectonic shifts in technology including AI, IoT, electric vehicles and clean energy, which puts us in a great position to grow along with these long-term, secular trends," Chief Executive Gary Dickerson said in a release, referring to artificial intelligence and the Internet of Things.
For the fiscal third quarter, Applied Materials anticipates $6.65 billion of revenue at the midpoint. It also models $1.83 to $2.19 in adjusted earnings per share. Analysts had been looking for $6.59 billion and $1.98, respectively.
The stock fell about 1.2% in Thursday's after-hours action.
-Emily Bary
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05-16-24 2018ET
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