Semiconductor equipment supplier Applied Materials late Thursday missed Wall Street's targets for its fiscal second quarter, citing supply chain issues. Its guidance also missed views. AMAT stock fell on Friday.
The Santa Clara, Calif.-based company earned an adjusted $1.85 a share on sales of $6.25 billion in the quarter ended May 1. Analysts polled by FactSet expected Applied Materials earnings of $1.90 a share on sales of $6.35 billion. On a year-over-year basis, the company's earnings rose 13% while sales climbed 12%.
"Demand for Applied Materials' products and services has never been stronger, yet we remain constrained by ongoing supply chain issues," Chief Executive Gary Dickerson said in a news release.
He added, "Our priority is to work quickly and creatively across the supply chain to bring more industry capacity on line, while accelerating the technology inflections that we believe will enable Applied to outgrow the semiconductor market in the years ahead."
AMAT Stock Drops
On the stock market today, AMAT stock sank 3.9% to close at 106.46. During the regular session Thursday, AMAT stock dipped 0.5% to 110.74.
For the current quarter, Applied Materials forecast adjusted earnings of $1.77 a share on sales of $6.25 billion. That's based on the midpoint of its outlook. Wall Street had predicted earnings of $2.04 a share on sales of $6.68 billion.
AMAT stock ranks No. 11 out of 31 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. It has a mediocre IBD Composite Rating of 67 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 at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
