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Applied Materials reported revenue of $ 6.25 billion in its most recent quarter.
David Paul Morris / Bloomberg
Applied materials
Lower-than-expected earnings for the July quarter were reported, citing ongoing supply-chain issues.
Shares of Applied Materials (Ticker: AMAT) fell 1.7% to $ 108.85 after its release on Thursday. Includes the company’s core customers
Intel
(INTC) and
Taiwan Semiconductor Manufacturing
(TSM).
The chip equipment maker reported consistent earnings of $ 1.85 per share for the April quarter, compared to the consensus estimate of 90 1.90 among Wall Street analysts tracked by FactSet. Revenue came in at $ 6.25 billion, slightly below analysts’ expectations of $ 6.349 billion.
The financial outlook of the management was also downward. Applied instruments forecast a range of potential revenue for the current quarter with a midpoint of $ 6.25 billion compared to the consensus outlook of $ 6.682 billion.
In a conference call, the company’s management said it had observed a covid-related factory shutdown in April that resulted in a shortage of equipment parts and chips. They expect supply problems to continue in the near term, with growing improvements beginning in the October quarter. Applied materials emphasize that they are confident about the demand for their products.
Wall Street analysts are generally positive about stocks of applied materials. According to Factset, about 85% have a buy or equivalent rating, while 15% of shares have a hold rating.
Earlier this week, Steffel analyst Patrick Ho reaffirmed his লক্ষ্য 197 target for buy ratings and applied materials, saying the company was “in a good position” to benefit from the secular growth trend in the semiconductor industry.
Shares of the company have fallen 30% this year, compared to a 27% drop in iShares semiconductor ETF (SOXX), which tracks the performance of the ICE semiconductor index.
The results of the applied materials come one day later
Cisco
System (
CSCO
) Similarly Covid-19 provided weaker-than-expected guidelines citing supply chain problems.
Enter Tae Kim at [email protected]
