Applied Materials Inc (NASDAQ:AMAT) shares are moving lower in extended trading on Thursday after the company announced that the U.S. Commerce Department expanded export restrictions that will negatively impact revenues.
AMAT stock is under selling pressure. Get the complete analysis here.
What To Know: After the market close on Thursday, Applied Materials said in a regulatory filing that the U.S. Department of Commerce's Bureau of Industry and Security issued a new rule that expands the list of companies subject to U.S. export restrictions.
The company expects the new rule to further restrict its ability to export certain products to China-based customers without a license.
Applied Materials anticipates that the export restrictions will reduce its revenue for the fourth quarter by approximately $110 million. The company previously guided for fourth-quarter revenue of $6.2 billion to $7.2 billion, per Benzinga Pro.
Applied Materials also expects the new restrictions to reduce its total revenue in fiscal 2026 by approximately $600 million.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. The company provides engineering solutions for new semiconductors and advanced displays.
Is AMAT A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action, which you can find on Benzinga's quote pages — such as Applied Materials’ page, for example — there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Applied Materials does pay a dividend, which yields 1.07% per year. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Applied Materials will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
AMAT Price Action: Applied Materials shares were down 3.39% in after-hours Thursday, trading at $216 at the time of publication, according to Benzinga Pro.
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