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Applied Materials shares fall 5% despite outlook
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Applied Materials shares fall 5% despite outlook

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  • Applied Materials shares fell about 5% in Friday premarket trading despite fourth-quarter revenue guidance above Wall Street estimates.
  • The company forecast Q4 revenue of $10.25 billion ± $500 million, compared with the $9.54 billion analyst consensus.
  • Investor attention remains on competition after analysts said Applied’s revenue performance has lagged peers including ASML and Lam Research.

Applied Materials (NASDAQ:AMAT) shares fell about 5% in Friday premarket trading as competition concerns outweighed its above-consensus $10.25 billion fourth-quarter revenue forecast.

The company expects $10.25 billion ± $500 million of Q4 revenue versus the $9.54 billion consensus, after Q3 revenue increased 25% to $9.12 billion.

Applied expects Q4 adjusted EPS of $4.02 ± $0.20 and a 50.4% adjusted gross margin, while Summit Insights said its topline performance has lagged ASML (NASDAQ:ASML) and Lam Research (NASDAQ:LRCX).

Applied’s Q3 revenue reached $9.12 billion, while non-GAAP EPS rose 41% to $3.50 and DRAM represented 26% of Semiconductor Systems revenue.

Recent moves include six new DRAM and advanced-packaging systems, expanded EPIC Center partnerships and a $500 million Singapore campus supporting additional manufacturing capacity.

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