Applied Materials Q4 Earnings: Revenue And EPS Beat, Strong Guidance, Shares Slide As Criminal Investigation Looms

Applied Materials Inc AMAT reported fiscal fourth-quarter financial results after the close on Thursday. Here's a rundown of the report and a look at what's driving shares lower after hours.

Q4 Earnings: Applied Materials said fourth-quarter revenue was flat year-over-year at $6.72 billion, which beat the consensus estimate of $6.52 billion, according to Benzinga Pro. The company reported quarterly earnings of $2.12 per share, which beat analyst estimates of $2 per share.

Gross margin was 47.3% in the fourth quarter. Applied Materials generated $1.56 billion in cash from operations in the quarter. 

"Applied Materials delivered record revenue, earnings and cash flow in fiscal 2023 and is outgrowing the wafer fabrication equipment market for the fifth year in a row," said Gary Dickerson, president and CEO of Applied Materials.

"Applied's broad product portfolio, strong customer relationships and leadership at major technology inflections put us in a great position to profitably grow the company as powerful trends fuel the semiconductor industry's expansion in the years ahead."

Outlook: Applied Materials sees fiscal first-quarter revenue of $6.47 billion, plus or minus $400 million, versus estimates of $5.86 billion. The company expects adjusted earnings to be between $1.72 and $2.08 per share, versus estimates of $1.69 per share. 

What's Driving The Action: Shares are reacting to the company's quarterly print, but additional selling pressure appears to be due to a Reuters report indicating the chip equipment maker is under U.S. criminal investigation for potentially evading export restrictions on China's SMIC.

Management will hold a conference call to discuss these results at 4:30 p.m. ET.

See Also: Investor Sentiment Improves Further Following PPI Data

AMAT Price Action: Applied Materials shares were down 6.33% after hours at $145.01 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Applied Materials.