Applied material logo on December 17th, 2024.
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Applied materials The shares sank more than 10% in an extension transaction on Thursday as the semiconductor equipment company revealed its quarter outlook.
Here’s how the applied material was delivered with the third quarter revenue results and the LSEG consensus estimates:
EPS: $2.48, adjusted, paired and $2.36 estimate. Report: $7.3 billion vs. $7.3 billion $7.2 billion.
Applied Materials said it expects current quarterly adjusted earnings to be $2.11 per share. The company says it expects revenues of $7.7 billion, along with an estimated $7.34 billion.
CEO Gary Dickerson said the current macroeconomic and policy environment “creates increased uncertainty and reduced visibility.” He said the company’s Chinese operations are particularly affected by uncertainty.
The Trump administration’s tariffs can double the price of imported chips unless companies committed to building in the US create tools for chip foundries physically.
Applied Materials said it assumes that there is a large backlog of pending export license applications with the US government, but none will be issued in the next quarter.
“We expect a decline in revenue in the fourth quarter, driven both by China’s capacity consumption and non-linear demand from cutting-edge customers given market concentration and fab timing,” the company’s finance chief said in a statement. He added that he hopes that lower China operations will continue for more quarters.
Applied Material reported net income of $1.78 billion, or $2.22 per quarterly diluted share, and $1.710 billion or $2.05 year-on-year.
The company’s most important division, Semiconductor Systems, represents sales of $5.43 billion, an estimated estimate, and a 10% increase from last year.
The applied material was praised by President Donald Trump earlier this month after being included in the Apple program to make more chips in the US
Apple said it will partner with chip makers to produce more manufacturing equipment in Austin, Texas.
Watch: Apple and Trump Details $100 Billion US Expenditure Expansion: Here’s What You Need to Know
