Applied Materials Down 2% On Earnings Report

Applied Materials, Inc. AMAT shares are down over 2% in after-hours trading, after the company missed earnings estimates. The company reported second quarter earnings of 37 cents per share on $2.86 billion in revenues. Wall Street had been looking for earnings of 37 cents per share on $2.77 billion in revenues. "Applied delivered one of the best quarters in the company`s history, including record net sales in our solar business," said Mike Splinter, chairman and chief executive officer. "While near-term economic conditions have tempered our growth expectations, our outlook for the year remains strong driven by our customers` plans to invest in the advanced technologies needed to meet growing demand for mobile devices and consumer electronics." Splinter added, "Earlier this month, we announced the planned acquisition of Varian Semiconductor to strengthen our leadership in the semiconductor industry and deliver value to our customers, shareholders and employees worldwide." "We exceeded our guidance for net sales in the second quarter and delivered earnings per share at the high end of the range," said George Davis, chief financial officer. "During the quarter, we also raised our dividend by 14 percent to 8 cents per share and generated operating cash flow of more than $700 million." The company said the second quarter backlog increased by $344 million to $3.88 billion. At last check, shares were off 34 cents to $13.37, a loss of 2.5%.