Applied Materials Gives Upbeat Profit Outlook
February 18 2016 - 6:50PM
Dow Jones News
Applied Materials Inc. on Thursday gave an upbeat profit outlook
for its current quarter and reported financial results for its
latest reporting quarter that edged above Wall Street expectations,
despite flat orders.
For its fiscal second quarter ending in April, Applied Materials
forecast adjusted share earnings of 30 cents to 34 cents. Analysts
polled by Thomson Reuters had recently forecast 26 cents a
share.
For the first quarter ended Jan. 31, the company reported new
orders were essentially flat compared with the previous year at
$2.28 billion. It said silicon-systems orders fell 11% to $1.28
billion. That business supplies equipment used to fabricate
semiconductor chips. New orders in its global services segment rose
12% to $773 million.
Orders in the display business, which sells products for making
the LCDs and other technologies used in TVs and smartphones, jumped
to $183 million from $107 million a year earlier, the company
added.
Earnings fell to $286 million, or 25 cents a share, from $348
million, or 28 cents a share, a year earlier, the company said.
Excluding special items, earnings were 26 cents a share. Analysts
had expected 25 cents a share in earnings. Meanwhile, operating
expenses rose 12%.
Revenue fell 4.3% to $2.26 billion. Analysts had forecast $2.24
billion in revenue, according to Thomson Reuters.
The company's stock price jumped 7.2% to $18.41 a share in
after-hours trading on Thursday.
The maker of semiconductor manufacturing tools, often seen as a
proxy for chip makers, experiences wide swings in its financial
results as makers of chips or computer displays react to demand by
building or cutting production capacity.
Applied Materials has seen caution from foundries, a large
category of com panies that make chips to order for others for
applications like mobile phones.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
(END) Dow Jones Newswires
February 18, 2016 18:35 ET (23:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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