Applied Materials Beats Q3 Earnings Estimates, Warns Of Bumpy Start To Q4, Outlook Disappoints

Applied Materials Inc 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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