The Chip Shortage Isn’t Slowing Applied Materials. The Stock Rises on Strong Earnings.


https://www.barrons.com/articles/warren-buffetts-berkshire-bought-a-big-activision-stake-before-the-microsoft-deal-51644879188

Applied Materials delivered better than expected earnings in its January quarter despite continued supply challenges. Shares of the semiconductor equipment manufacturer rose in after-hours trading.

For the fiscal first quarter, Applied Materials reported non-GAAP adjusted earnings of $1.89 a share, topping consensus estimates at $1.86 a share, according to FactSet. Revenue jumped 21% year over year to a record $6.27 billion, which was ahead of analyst expectations at $6.19 billion.

“While the supply environment remains challenging, Applied Materials is doing everything we can to deliver for our customers and we recorded our highest-ever quarterly revenues,” CEO Gary Dickerson said in the earnings press release.

The report was enough to send shares 3.3% higher in after-hours trading.

For the fiscal second quarter, the firm forecasts net sales of about $6.35 billion—plus or minus $300 million. That range factors in the expected impact of ongoing supply chain challenges, the company said. The company expects non-GAAP adjusted earnings between $1.75 per share and $2.05 per share for the current quarter. Wall Street’s consensus estimates called for sales of $6.37 billion and non-GAAP adjusted earnings of $1.94 per share.

“Our outlook for 2022 and beyond is very positive as long-term secular trends drive our markets structurally higher and Applied’s broad technology portfolio puts us in a great position to capture a larger portion of our served markets,” Dickerson added.


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