AMAT Stock: Applied Content Crushes Quarterly Goals

Semiconductor equipment dealer Applied Materials (AMAT) late Thursday crushed Wall Street targets for its fiscal fourth quarter and guided much higher than expectations for the current period. AMAT stock rose in extended trading.




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The Santa Clara, California-based company earned an adjusted $2.03 a share on sales of $6.75 billion in the quarter ended Oct. 30. Analysts polled by FactSet had forecast earnings of $1.73 a share on sales of $6.45 billion. On a year-over-year basis, Applied Materials earnings increased 5% and sales rose 10%.

On October 12, Applied Materials warned investors that new US trade restrictions on the sale of semiconductor products in China would reduce its fiscal Q4 sales by about $400 million, plus or minus $150 million. As a result, it lowered its sales and earnings outlook for the period.

For the current quarter, Applied Materials forecast adjusted earnings of $1.93, a share of $6.7 billion in sales. That is based on the midpoint of his view. Wall Street was modeling earnings of $1.77 per share on sales of $6.35 billion in the company’s first fiscal quarter.

AMAT Stock Rises After Report

In after-hours trading on the stock market today, AMAT stock advanced 0.8% to 105.23. During Thursday’s regular session, AMAT stock rose 0.2% to close at 104.45.

“Applied Materials delivered a strong finish to our fiscal year with record performance, and we remain focused on easing supply chain constraints and doing everything possible to meet customer demand,” CEO Gary Dickerson said in a news release.

He added, “Although we are slowing down the growth rate of spending in the short term amid geopolitical and macroeconomic challenges, we are making the strategic investments to win major technological inflections that will enable Functional to outgrow the semiconductor market. “

AMAT stock is at No. 13 of 29 stocks in the IBD semiconductor equipment industry group, according to IBD StockCheck. He has an average IBD Composite Rating of 65 out of 99.

The IBD Composite Rating is a combination of key fundamental and technical metrics to help investors assess a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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