Applied Materials 2Q Profit Rose on Higher Sales

By Jeffrey T. Lewis

Applied Materials Inc. said Thursday profit increased in its second quarter as sales rose, but added that supply shortages were holding the company back from making even more sales.

The Santa Clara, Ca.-based supplier of equipment to make semiconductors reported net income of $1.54 billion, compared with $1.33 billion a year earlier. Earnings per share reached $1.74 from 1.43 in the year-earlier period and adjusted earnings per share rose to $1.85 from $1.63.

The company had sales of $6.25 billion in the quarter, from $5.58 billion in the second quarter of last year. Applied Materials said it's working to improve the supply situation, which has hit manufacturers around the world.

"Demand for Applied Materials' products and services has never been stronger, yet we remain constrained by on-going supply chain issues," said Applied Materials Chief Executive Officer, Gary Dickerson. "Our priority is to work quickly and creatively across the supply chain to bring more industry capacity on-line."

The sales and profit figures underperformed market expectations. The median forecast by analysts surveyed by FactSet was for sales of $6.3 billion and net income of $1.7 billion. The company said in its first-quarter earnings report that it expected second-quarter sales of about $6.35 billion, plus or minus $300 million, and adjusted earnings per share in a range from $1.75 to $2.05.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

May 19, 2022 16:41 ET (20:41 GMT)

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