Applied Materials' Stock Falls on Guidance -- Earnings Review

   By Maria Armental

Applied Materials Inc. (AMAT) reported third-quarter results on Thursday. Here's what you need to know:

PROFIT: Net income rose 27% to $1.17 billion, or $1.17 a share. On an adjusted basis, profit rose to $1.20 a share from 86 cents a share a year earlier. The company had forecast an adjusted profit between $1.13 a share and $1.21 a share. Analysts surveyed by Thomson Reuters were predicting $1.17 a share.

REVENUE: Net sales rose 19% to $4.47 billion, compared with the company's forecast of $4.33 billion to $4.53 billion, and analysts' projected $4.43 billion.

PROFIT MARGIN: Gross profit margin was roughly flat from the year earlier at 45.4%.

COMMENTARY: "While we have seen some near-term adjustments in customer spending, fiscal 2018 is on track to be another record-setting year for Applied Materials and we expect each of our major businesses to deliver strong double-digit growth," Chief Executive Gary Dickerson said in a statement. "Our future outlook remains positive as the A.I.-Big Data era requires new breakthroughs in technology, from materials to systems, providing Applied with a great opportunity to play a larger and more valuable role in the ecosystem."

OUTLOOK: The semiconductor-equipment supplier projects 92 cents a share to $1 a share in adjusted profit and $3.85 billion to $4.15 billion in revenue this quarter, compared with analysts' projected $1.17 a share on $4.46 billion in revenue.

STOCK: Shares, which are lagging the market with a 7% decline this year, fell 3.5% to $45.77 in after-hours trading.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

August 16, 2018 16:36 ET (20:36 GMT)

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