Semiconductor equipment vendor Applied Materials late Thursday beat Wall Street's estimates for its fiscal third quarter and guided slightly higher than views for the current period. But AMAT stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted $2.12 a share on sales of $6.78 billion in the quarter ended July 28. Analysts polled by FactSet had expected Applied Materials to earn $2.03 a share on sales of $6.68 billion. On a year-over-year basis, Applied Materials earnings rose 12% while sales climbed 5%.
Applied Materials saw the most growth in China, where sales increased 24% to $2.15 billion. China accounted for 32% of the company's sales in fiscal Q3, up from 27% in the year-earlier period.
Meanwhile, sales in Taiwan fell 15% to $1.15 billion. Sales in the South Korea advanced 12% to $1.10 billion. And sales in the U.S. rose 1% to $1.05 billion.
For the current quarter, Applied Materials expects to earn an adjusted $2.18 a share on sales of $6.93 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of $2.14 a share on sales of $6.92 billion for the fiscal fourth quarter. In the year-earlier period, Applied Materials earned an adjusted $2.12 a share on sales of $6.72 billion.
AMAT Stock Drops After Report
In after-hours trading on the stock market today, AMAT stock fell 1.5% to 208.66. During the regular session Thursday, AMAT stock surged 5.1% higher to close at 211.83.
Applied Materials stock has been rebounding from a four-week sell-off. After hitting an all-time high of 255.89 on July 10, AMAT stock fell as much as 33% to 171.61 on Aug. 5 before turning higher.
"Applied Materials is delivering strong results in 2024 with record revenues in our fiscal third quarter and earnings toward the high end of our guided range," Chief Executive Gary Dickerson said in a news release. "The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term."
Applied Materials Ranks Fifth In Group
AMAT stock ranks fifth out of 27 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. Applied Materials stock has an IBD Composite Rating of 70 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.
Applied Materials makes materials engineering systems used to produce computer chips and advanced displays.
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