Why Applied Materials Stock Is Moving Higher After Hours

Applied Materials Inc AMAT shares are rising in Thursday's after-hours session after the company reported better-than-expected financial results and issued strong guidance.

What Happened: Applied Materials said fiscal first-quarter revenue increased 7% year-over-year to $6.74 billion, which beat consensus estimates of $6.69 billion, according to data from Benzinga Pro.

The chip manufacturing equipment supplier reported quarterly earnings of $2.03 per share, which beat average analyst estimates of $1.93 per share.

"While the economy and semiconductor industry are facing challenges in 2023, Applied Materials delivered strong first quarter results, and we believe Applied is well positioned to outperform our markets this year," said Gary Dickerson, president and CEO of Applied Materials.

"Our resilience is underpinned by our strong positions with leading customers at key technology inflections, large backlog of differentiated products and growing service business."

Applied Materials sees fiscal second-quarter revenue in a range of $6 billion to $6.8 billion versus estimates of $5.86 billion. The company expects second-quarter adjusted earnings to be between $1.66 and $2.02 per share versus estimates of $1.75 per share.

Despite the strong guidance, the company noted that it expects ongoing supply chain challenges and a negative estimated impact of $250 million dollars related to a cybersecurity event recently announced by one of its suppliers. 

AMAT Price Action: Applied Materials shares are up 2.66% after hours at $118.46 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Applied Materials.