Applied Materials: Earnings Beat But Stock Drops

Overview

Applied Materials (AMAT) stock fell over 7% in extended trading on Thursday after a report that the company's earnings per share (EPS) beat Wall Street estimates, but overall revenue fell slightly. The company reported higher profit in its fiscal fourth quarter, but revenue fell slightly from a year ago. Applied Materials forecast third-quarter results above Wall Street estimates.

Key Takeaways

• Applied Materials' stock dropped more than 7% in extended trading on Thursday.
• The company reported higher profit in its fiscal fourth quarter, but overall revenue fell slightly from a year ago.
• Applied Materials forecast third-quarter results above Wall Street estimates.

Earnings Results

After adjustments, Applied Materials logged earnings per share of $2.09, while analysts tracked by Refinitiv expected $2.02. The company reported revenue of $6.45 billion, slightly below the $6.51 billion analysts expected.

Outlook

Applied Materials forecast third-quarter revenue of $6.65 billion to $7.15 billion, above the $6.56 billion analysts expected. The company also forecast third-quarter earnings per share of $2.10 to $2.30, above the $2.10 analysts expected.

Analyst Commentary

"Applied Materials' earnings beat expectations, but the stock is down in extended trading on concerns about the company's revenue outlook," said Wedbush analyst Matt Bryson. "The company's guidance for the third quarter was below our expectations, and we believe that this is a sign that the semiconductor industry is slowing down."

Conclusion

Applied Materials' earnings beat expectations, but the stock is down in extended trading on concerns about the company's revenue outlook. The company's guidance for the third quarter was below analysts' expectations, and this is a sign that the semiconductor industry is slowing down.