Investing.com – Applied Materials reported second-quarter earnings that beat analysts’ expectations on both the top and bottom lines and offered up in-line guidance, easing investor concerns the glut in memory supplies will weigh on the sector for prolonged period of time.
Applied Materials (NASDAQ:AMAT) shares rose 3.9% after hours to $43.28 on top of a 0.4% gain in regular trading. With today’s close, the shares were up 27.2% for the year. If the after-market price holds on Friday, the year-to-date gain would rise to 32.2%.
The maker of chip-equipment-manufacturing products issued in-line guidance for the third quarter, guiding earnings in the range of $0.67 to $0.75, compared with expectations from S&P Capital IQ for earnings of $0.70 a share. Revenue guidance for the third quarter of between $3.375 billion and $3.675 billion matched expectations of $3.53 billion.
The company reported earnings per share of $0.70 on revenue of $3.54 billion. Analysts polled by Investing.com forecast earnings per share of $0.67 on revenue of $3.5 billion. That compared to earnings per share of $1.22 on revenue of $4.57 billion in the same period a year earlier. The company had reported earnings per share of $0.81 on revenue of $3.75 billion in the previous quarter.
“In the second fiscal quarter Applied Materials delivered results toward the top-end of our guidance range, reflecting solid execution across the company in a business environment that remains challenging,” said Gary Dickerson, president and CEO, in a statement. “Looking ahead, we maintain a positive view of our markets as powerful new demand drivers for semiconductors and displays take shape, creating tremendous opportunities for Applied Materials.”