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

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.


Leave a Reply

Your email address will not be published. Required fields are marked *