Applied Materials Issues Upbeat Guidance as New Orders Surge
20 May 2016 - 7:30AM
Dow Jones News
Applied Materials Inc. said orders hit a 15-year high in its
latest quarter, prompting the maker of semiconductor manufacturing
tools to project fiscal third-quarter results sharply above
expectations.
Shares rose 4% in after-hours trading.
The Santa Clara, Calif., company supplies companies that make
things like mobile phones and televisions.
In the quarter ended May 1, Applied Materials saw orders surge
37% from a year earlier and 52% from the previous quarter, hitting
$3.5 billion. "We are making significant progress with our strategy
in semiconductor, display and service," said Chief Executive Gary
Dickerson, adding that he expects to post record earnings this
year. Orders rose by double digits across categories, paced by a
36% rise in foundry.
For the current quarter, the company is looking for 46 cents to
50 cents in adjusted earnings per share, well above the 36 cents
analysts have anticipated. Sales will rise 14% from a year earlier,
the company said, translating to $2.84 billion. Analysts have
predicted $2.51 billion in sales for the July period.
The revenue forecast suggests a significant pickup from the most
recent quarter, when sales were little changed from a year earlier.
Revenue came in at $2.45 billion, compared with $2.44 billion in
last year's quarter. The result edged in above the $2.43 billion
average analyst estimate.
Applied Materials reported a profit of $320 million for the
quarter, down from $364 million a year earlier. On a per-share
basis, earnings were flat at 29 cents because of a lower share
count. Excluding restructuring charges, among other items, profit
per share rose to 34 cents from 29 cents. Analysts projected 32
cents in adjusted earnings per share.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
May 19, 2016 17:15 ET (21:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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