The Applied Materials brand on Dec. 17, 2024.
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Applied Materials shares sank greater than 10% in prolonged buying and selling Thursday because the semiconductor gear firm supplied outlook for the present quarter that got here in light.
Here’s how Applied Materials did in its third-quarter earnings outcomes versus LSEG consensus estimates:
- EPS: $2.48, adjusted, versus $2.36 estimated.
- Revenue: $7.3 billion vs $7.22 billion estimated.
Applied Materials mentioned it expects $2.11 per share in adjusted earnings within the present quarter, decrease than LSEG estimates of $2.39 per share. The firm mentioned to anticipate $6.7 billion in income, versus $7.34 billion estimated.
CEO Gary Dickerson mentioned that the present macroeconomic and coverage surroundings is “creating increased uncertainty and lower visibility.” He mentioned the corporate’s China enterprise is especially effected by the uncertainty.
The Trump administration’s tariffs might double the worth of imported chips until corporations shopping for them decide to constructing within the U.S. Applied Materials makes instruments for chip foundries to bodily make chips, a lot of which presently occurs in Asia.
Applied Materials mentioned that it has a big backlog of pending export license functions with the U.S. authorities, however that it is assuming none of them can be issued within the subsequent quarter.
“We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing,” the corporate’s finance chief mentioned in a press release. He added that it anticipated decrease China enterprise to proceed for a number of extra quarters.
Applied Materials reported $1.78 billion in web revenue, or $2.22 per diluted share within the quarter, versus $1.71 billion or $2.05 within the year-ago interval.
The firm’s most essential division, semiconductor programs, reported $5.43 billion in gross sales, topping estimates, and representing a ten% rise from final yr.
Applied Materials was praised by President Donald Trump earlier this month after it was included in an Apple program to make extra chips within the U.S.
Apple mentioned it could associate with the chipmaker to supply extra manufacturing gear in Austin, Texas.
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