Semiconductor equipment maker Applied Materials late Thursday beat expectations for earnings in its fiscal second quarter but sales were a tad light. Its guidance was similarly mixed. AMAT stock fell in extended trading.
The Santa Clara, Calif.-based company earned an adjusted $2.39 a share on sales of $7.1 billion in the quarter ended April 27. Analysts polled by FactSet had expected earnings of $2.31 a share on sales of $7.13 billion. On a year-over-year basis, Applied Materials earnings rose 14% while sales increased 7%.
For the current quarter, Applied Materials forecast adjusted earnings of $2.35 a share on revenue of $7.2 billion. That's based on the midpoint of its guidance. Wall Street was modeling earnings of $2.31 a share on sales of $7.22 billion for the fiscal third quarter. In the same quarter last year, Applied Materials earned an adjusted $2.12 a share on sales of $6.78 billion.
"Despite the dynamic economic and trade environment, we have not seen significant changes to customer demand and are well-equipped to navigate evolving conditions with our robust global supply chain and diversified manufacturing footprint," Chief Financial Officer Brice Hill said in a news release.
Chief Executive Gary Dickerson said Applied Materials is working closely with its customers and partners to accelerate the industry's roadmap for "high-performance, energy-efficient AI computing."
In after-hours trading on the stock market today, AMAT stock fell more than 4% to 166.73. During the regular session Thursday, AMAT stock rose 0.4% to close at 174.75.
On Thursday, Applied Materials shares climbed back to their 200-day moving average line.
In its fiscal second quarter, foundry and logic chip gear accounted for 65% of Applied Material's semiconductor system revenue. The next largest share, 27%, was for dynamic random access memory, or DRAM, chips. Flash memory contributed the remaining 8%.
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