Applied Materials Beat Quarterly Estimates. Why the Stock Is Lower.
Shares of Applied Materials were falling Friday after the chip equipment maker issued mixed financial guidance. Applied Materials stock fell 5% to $175 in premarket trading. Chip maker stocks were also in the red, with Lam Research down 1.3%, while KLA Corp. was 0.7% lower. Late Thursday, the company reported adjusted earnings of $2.38 per share for its first fiscal quarter ended Jan. 26, beating Wall Street’s call for $2.28, according to FactSet. Net revenue of $7.17 billion was above the consensus estimate of $7.15 billion. “We delivered strong financial performance in the first fiscal quarter, with record revenue, gross margin expansion and robust shareholder distributions,” said Chief Financial Officer Brice Hill in the earnings release. One of those metrics was highlighted by William Blair analysts Jed Dorsheimer and Mark Shooter, who rate Applied Materials at Market Perform. “Gross margin reached 48.9%, a level not seen in 25 years, from […]
Applied Materials Beat Quarterly Estimates. Why the Stock Is Lower. Read Post »