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Applied Materials predicts woe

by on15 February 2019

Second quarter profit and revenue below analysts’ estimates

Chip gear maker Applied Materials forecast second quarter profit and revenue below analysts’ estimates.

Applied Materials said it expects current-quarter adjusted earnings between 62 and 70 cents per share and net sales in a range of $3.33 billion to $3.63 billion.

The cocaine nose jobs of Wall Street had expected the company to earn 76 cents per share on sales of $3.66 billion.

Investors are worried about a slowing smartphone market, especially in China, and its impact on chip demand. The US-China trade dispute and a slowing Chinese economy have hit Apple and Samsung.

Applied Materials Chief Executive Officer Gary Dickerson said:

“In the past quarter, there’s been more negative than positive news with the whole industry facing challenges”, CEO Gary Dickerson said during a post-earnings call.

Display equipment revenue in 2019 will decline by about a third from last year to record levels, Dickerson said.

Sales from its display business — which makes flat panel displays for televisions, PCs and smartphones — rose 14.4 percent to $507 million in the reported quarter.

Applied Materials said sales in its semiconductor business which accounts for most of its revenue fell a fifth to $2.27 billion in the reported quarter.

The company’s net income rose to $771 million in the first quarter ended 27 January from $165 million a year earlier. Net sales fell 10.7 percent to $3.75 billion.

Last modified on 15 February 2019
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