Applied Materials late Thursday beat Wall Street's targets for the semiconductor equipment maker's fiscal fourth quarter but offered mixed guidance for the current period. AMAT stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted $2.32 a share on sales of $7.05 billion in the quarter ended Oct. 27. Analysts polled by FactSet had expected earnings of $2.19 a share on sales of $6.96 billion. On a year-over-year basis, Applied Materials earnings rose 9% while sales increased 5%.
For the current quarter, Applied Materials forecast adjusted earnings of $2.29 a share on sales of $7.15 billion. Analysts had been looking for earnings of $2.27 a share on sales of $7.24 billion in the fiscal first quarter. In the year-earlier period, Applied Materials earned an adjusted $2.13 a share on sales of $6.71 billion.
In after-hours trading on the stock market today, AMAT stock sank more than 5% to 176.23. During the regular session Thursday, AMAT stock rose 1.8% to close at 186.
"Applied Materials' technology leadership and strong execution drove record Q4 and fiscal 2024 performance, our fifth consecutive year of growth," Chief Executive Gary Dickerson said in a news release.
He added, "Our portfolio of products and services uniquely positions us to enable our customers in their pursuit of AI and energy-efficient computing. As these key drivers of semiconductor innovation continue to grow in importance, the industry's roadmap is becoming increasingly dependent on materials engineering, where Applied is the clear leader."
China accounted for 30% of Applied Materials sales in the fiscal fourth quarter, down from 32% in fiscal Q3 and 44% in the year-earlier period. Sales in China declined 28% year over year to $2.14 billion. The U.S. government has been restricting sales of advanced semiconductor manufacturing gear to China.
Meanwhile, sales in Taiwan rose 39% year over year to $1.28 billion. Taiwan was Applied's second-largest market after China, accounting for 18% of total revenue.
Close behind was South Korea, which accounted for 17% of Applied sales in the quarter. Sales in South Korea increased 57% to $1.17 billion.
Sales in the U.S. increased 44% year over year to $1.15 billion in fiscal Q4. The U.S. made up 16% of Applied's total revenue in the period.
AMAT stock ranks No. 11 out of 27 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 40 out of 99.
Applied Materials stock is deep in an 18-week consolidation period with a buy point of 255.89, according to IBD MarketSurge charts. It has been trading beneath its 50-day and 200-day moving average lines, a negative sign, based on IBD trading guidelines.
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