Applied Materials
reported better-than-expected earnings for its January quarter, sending the stock higher in after-hours trading Thursday.
The chip equipment maker reported adjusted earnings of $2.13 a share for the January quarter, compared with the consensus estimate of $1.90 a share among Wall Street analysts tracked by FactSet. Revenue came in at $6.71 billion, above analysts’ expectations of $6.48 billion.
Applied Materials jumped 14.6% to $215 in after-hours trading. The company’s key customers include Intel and
Taiwan Semiconductor Manufacturing.
Applied Materials
also forecast a range of potential revenue for the current quarter, which ends in April, with a midpoint of $6.5 billion, compared with the consensus view of $6.34 billion.
“Our leadership positions at key semiconductor inflections support continued outperformance as customers ramp next-generation chip technologies critical to AI and IoT [Internet of Things] over the next several years,” Gary Dickerson, president and CEO, said in the earnings release.
On a conference call to discuss the results, management said its chip equipment business will grow faster than its semiconductor industry because the increasing technical complexity of advanced chips.
Over the past year, Applied Materials shares have rallied roughly 57%, compared with the approximate 45% rise for the iShares Semiconductor sector exchange-traded fund.
Write to Tae Kim at [email protected]
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