Applied Materials reported that its quarterly revenue reached $7.1 billion, falling short of analysts’ expectations, primarily due to declining sales in China.
The semiconductor equipment manufacturer saw a 7% year-over-year increase in revenue but missed the estimates provided by Alpha. Revenue from China stood at $1.77 billion, which accounted for about a quarter of the company’s total, significantly down from $2.83 billion last year when it made up 43% of revenue. Sales trends in China have been down for about a year.
The adjusted net income for the company was $1.94 billion, or $2.39 per share, up from $1.74 billion, or $2.09 per share in the same quarter last year, and it exceeded expectations.
Looking ahead, Applied Materials forecasts third-quarter earnings per share between $2.15 and $2.55, with revenues expected to be between $7.2 billion and $7.7 billion, slightly above Wall Street projections at midpoints.
Despite the fluctuating economic and trade environment, CFO Brice Hill stated that they have not observed any significant changes in customer demand, suggesting they’re prepared to handle the evolving situation.
In after-hours trading, Applied Materials’ stock dropped nearly 5%. Before that, the share price had risen approximately 8% until the close on Thursday.
