Applied Materials beats Q3 but warns of weaker sales, shares fall

Investing.com -- Applied Materials Inc. reported third-quarter results above Wall Street expectations on Wednesday but forecast a steeper-than-expected revenue drop for the current quarter, sending its shares down 11%.

The chipmaking equipment supplier posted earnings of $2.48 per share for the quarter ended July, compared with analysts’ estimates of $2.36.

Revenue rose to $7.3 billion from $7.22 billion expected.

For the fourth quarter, Applied Materials expects earnings of $1.91 to $2.31 per share and revenue of $6.2 billion to $7.2 billion, both below consensus estimates.

“We are currently operating in a dynamic macroeconomic and policy environment, which is creating increased uncertainty and lower visibility in the near term,” said CEO Gary Dickerson.

CFO Brice Hill said the weaker outlook reflects “digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing.”

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