Applied Materials reports higher earnings and upgrades. – Today’s

Semiconductor equipment supplier Applied Materials Inc. (AMAT) reported fiscal third-quarter results that beat Wall Street expectations and provided current guidance slightly above estimates. However, AMAT shares fell in after-hours trading.

The Santa Clara, California-based company reported sales of $6.78 billion and adjusted earnings of $2.12 per share in the quarter ended July 28. Analysts polled by FactSet expected Applied Materials to report sales of $6.68 billion and earnings of $2.03 per share. Profits rose 12% on a 5% sales increase compared with the previous year.

Applied Materials saw its strongest growth in China, where sales rose 24% to $2.15 billion. China accounted for 32% of the company’s sales in the third quarter, up from 27% a year earlier.

Meanwhile, sales in Taiwan fell 15% to $1.15 billion. Sales in South Korea rose 12% to $1.1 billion. Sales in the United States rose 1% to $1.05 billion.

Applied Materials expects adjusted earnings per share of $2.18 on sales of $6.93 billion for the quarter. That’s based on the midpoint of your direction. Wall Street expected fiscal fourth-quarter sales of $6.92 billion and earnings per share of $2.14. In the same period last year, Applied Materials had sales of $6.72 billion and adjusted earnings per share of $2.12.

AMAT shares fall after report

AMAT shares fell 1.5% to $208.66 in after-hours trading. AMAT shares rose 5.1% to $211.83 in regular trading on Thursday.

Applied Materials’ stock price has recovered from a four-week sell-off. After hitting an all-time high of 255.89 on July 10, AMAT stock fell 33% to 171.61 on August 5 before rising again.

“Applied Materials is on track to deliver strong results in 2024, with record fiscal third quarter revenue and earnings near the high end of our guidance range,” CEO Gary Dickerson said in a press release. “The race for leadership in AI is driving demand for our unique and connected portfolio of products and services, positioning Applied Materials to outperform our market over the long term.”

Applied Materials ranks fifth in the group

According to IBD Stock Checkup, AMAT stock ranks fifth among the 27 stocks in IBD’s Semiconductor Equipment industry group. Applied Materials stock has an IBD Composite Rating of 70 out of 99.

The IBD Composite Rating is a combination of key fundamental and technical indicators that help investors assess a stock’s strengths. The best growth stocks have a Composite Rating of 90 or higher.

Applied Materials makes engineered materials systems used in the production of computer chips and advanced displays.

Follow Patrick Seitz on X (formerly Twitter) at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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