Applied Materials Inc (NASDAQ:AMAT) reported financial results for the third quarter after market close on Thursday. Here’s a rundown of the report.
AMAT stock is down today. See what is driving the move here.
Earnings Highlights: Applied Materials reported third-quarter revenue of $7.3 billion, beating analyst estimates of $7.22 billion. The chip equipment manufacturer reported third-quarter adjusted earnings of $2.48 per share, beating analyst estimates of $2.36 per share, according to Benzinga Pro.
Total revenue was up 8% year-over-year. Gross margin was 48.8% in the third quarter. The company ended the period with $5.38 billion in cash and cash equivalents.
“We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing,” said Brice Hill, senior vice president and CFO of Applied Materials.
“We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint and deep customer relationships.”
What’s Next: Applied Materials expects fourth-quarter revenue of $6.7 billion, plus or minus $500 million, versus estimates of $7.33 billion. The company expects fourth-quarter adjusted earnings to be between $1.91 and $2.31 per share, versus estimates of $2.39 per share.
Applied Materials’ management team will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET.
AMAT Price Action: Applied Materials shares were down 10.75% in after-hours trading at $167.97 at the time of publication, according to Benzinga Pro.
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