Applied materials return whiffs across the board on stock drops

Shares of Applied Materials Inc. fell in an extended session on Thursday after semiconductor-equipment makers missed earnings, revenue and forecasts, and pointed to continued supply-chain problems.

Applied materials AMAT,
-0.54%
Financial reported net earnings per share of 1.54 billion, or $ 1.75, for the second quarter. Consistent earnings, excluding the effects of share-based compensation and other items, were $ 1.85 per share, compared to $ 1.63 per share in the year before. Revenue rose to 6.25 billion from $ 5.58 billion in the same quarter last year.

Analysts surveyed by Factset forecast a consistent earnings of $ 1.90 per share over 6.35 billion in revenue. Shares fell nearly 5% in after-hours trading, closing at .7 110.74 after falling 0.5% in the regular session. The stock has declined nearly 10% in the last 12 months, in line with the performance of the S&P 500 Index SPX.
-0.58%.

Manufacturers of silicon-wafers, known as fabrication plants or “fabs”, received more orders than capacity during the Covid-19 epidemic because semiconductors were needed to make electronics, cars and other products. Has been in short supply for almost two years. Chips and other components are needed to make its tools, as well as applied materials, however, and the same has struggled with supply-chain problems.

“Demand for applied materials products and services has never been stronger, yet we are limited by ongoing supply-chain issues,” chief executive Gary Dickerson said in a statement.

For the third quarter, Applied Materials forecast earnings of $ 1.59 to $ 1.95 per share on sales of $ 5.85 billion to $ 6.65 billion. According to Factset, analysts expected a consistent earnings of $ 2.04 per share on an average earnings of $ 6.68 billion.

Other fab-equipment suppliers have simultaneously stated that their sales have been stalled due to supply constraints amid high demand, as seen in the earnings report from ASML Holding NV ASML.
-0.44%,
Lam Research Corporation LRCX,
-1.12%,
And KLA Corporation KLAC,
+ 1.40%
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