Chip equipment supplier Applied Materials reported better than expected third quarter earnings after the market close Thursday. $AMAT showed a 44% dip in earnings as weak performance from all three segments hurt net sales.
Chip equipment supplier Applied Materials reported better than expected third quarter earnings after the market close Thursday. $AMAT showed a 44% dip in earnings as weak performance from all three segments hurt net sales.
Applied Materials, Inc. NASDAQ: AMAT Reported Earnings After Close Thursday
$0.74 Beat $0.70 EPS AND $3.56B Beat $3.52 Billion Revenue Forecast
Earnings
Applied Materials announced its third-quarter earnings of adjusted earnings per share of 74 cents on revenue of $3.56 billion. Analysts expected earnings per share of 70 cents on revenue of $3.52 billion, according to Refinitiv. Net income plunged by 44% to $571 million or $0.61 per share.
Gary Dickerson, president and CEO, said going forward the company is “fully funding our R&D programs to develop new products and capabilities”.
Applied Materials, Inc. NASDAQ: AMAT
Market Reaction – After hours $46.99 −0.17 (-0.36%)
Highlights
- During the third quarter, sales declined in the all the three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
- From a geography perspective, the double-digit sales growth in the US and Taiwan were hampered by weak sales from other regions.
- The company has been struggling in the challenging market environment.
- Applied Materials gets majority of the revenue contribution from Asia Pacific region, with China being a significant benefactor. The trade war between the US and China turned out to be a major headwind in the contribution from China.
Outlook
- Looking ahead into the fourth quarter, the company expects net sales to be about $3.685 billion, plus or minus $150 million.
- Adjusted earnings are anticipated to be in the range of $0.72 to $0.80 per share.
Source: AMAT; AlphaStreet
From The Traders Community News Desk