Supplier of semiconductor equipment Applied materials (AMAT) late Thursday crushed Wall Street’s fiscal fourth quarter targets and led much higher than current period ratings. Shares of AMAT rose in extended trading.
The Santa Clara, California-based company earned an adjusted $2.03 per share on revenue of $6.75 billion in the quarter ended Oct. 30. Analysts polled by FactSet had forecast earnings of $1.73 per share on revenue of $6.45 billion. Year-over-year, Applied Materials revenues grew 5%, while sales grew 10%.
On Oct. 12, Applied Materials warned investors that new U.S. trade restrictions on sales of semiconductor products in China would reduce fiscal fourth-quarter sales by about $400 million, plus or minus $150 million. As a result, it lowered its revenue and earnings outlook for the period.
For the current quarter, Applied Materials forecast adjusted earnings of $1.93 per share on revenue of $6.7 billion. That’s based on the midpoint of his outlook. Wall Street was counting on earnings of $1.77 per share on revenue of $6.35 billion in the company’s fiscal first quarter.
AMAT Stock Rise on Report
In after-hours trading in the stock market today, AMAT shares rose 0.8% to 105.23. During the regular session on Thursday, AMAT shares rose 0.2% to close at 104.45.
“Applied Materials ended our fiscal year strong with record performance, and we remain focused on reducing supply chain constraints and doing everything we can to meet customer demand,” CEO Gary Dickerson said in a press release.
He added, “While we are slowing spending growth in the near term amid geopolitical and macroeconomic challenges, we are making the strategic investments to win the major technology changes that will enable Applied to outgrow the semiconductor market. “
AMAT stock ranks #13 out of 29 stocks in IBD’s semiconductor equipment industry group, according to IBD Stock Checkup. It has a mediocre IBD Composite Rating of 65 out of 99.
IBD’s Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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