Applied Materials Profit Rises But New Orders Miss -- Update
November 17 2016 - 7:57PM
Dow Jones News
By Tess Stynes
Applied Materials Inc. said its earnings jumped sharply in the
three months ended in October, but the chip-gear maker's new orders
missed expectations, sending shares lower.
In recent after-hours trading, Applied Material's shares fell
4.9% to $29.15.
Applied makes equipment used in the manufacturing of
semiconductors, which depends on a relatively small number of chip
makers that write very big checks. But the size of those checks can
vary greatly, depending on where those chip makers are in their
production cycles.
In the latest quarter, new orders rose 25% to $3.03 billion.
Analysts had expected new orders to reach $3.21 billion, according
to FactSet.
For the period ended Oct. 30, Applied Materials reported a
profit of $610 million, or 56 cents a share, up from $336 million,
or 28 cents a share, a year earlier. Excluding share-based
compensation and other items, adjusted per-share earnings rose to
66 cents from 29 cents. Revenue increased 39% to $3.3 billion and
climbed 17% sequentially.
The company expected per-share profit of 61 cents to 69 cents
and revenue growth of 15% to 19% sequentially.
For the current quarter, the company forecasted per-share
earnings of 62 cents to 70 cents and revenue of $3.20 billion to
$3.34 billion. Analysts polled by Thomson Reuters expected
per-share profit of 58 cents and revenue of $3.12 billion.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
November 17, 2016 19:42 ET (00:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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