Applied Materials shares rise as company earnings perform better, sees AI momentum

Applied Materials Inc. delivered upbeat results and guidance Thursday afternoon, and its shares rose in the extended session.

The chip equipment company reported fiscal first-quarter net income of $2.02 billion, or $2.41 per share, compared with $1.72 billion, or $2.02 per share, in the quarter of the previous year.

On a rectified basis, AMAT Applied Materials,
it earned $2.13 per share, up from $2.03 per share a year earlier, while analysts tracked by FactSet estimated $1.90 per share.

Net revenue fell from $6.74 billion to $6.71 billion, but was above consensus forecasts of $6.48 billion.

The stock rose 12% in after-hours action Thursday.

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“Our leadership positions in key semiconductor sectors support continued outperformance as customers develop next-generation chip technologies critical to AI and IoT [Internet of Things] in the coming years,” CEO Gary Dickerson said in a statement.

The company expects revenue of $6.1 billion to $6.9 billion for the current quarter, with the midpoint of that forecast – $6.5 billion – beating the FactSet consensus of $6.34 billion.

Applied Materials also models adjusted earnings per share between $1.79 and $2.15, with the midpoint being $1.97. Analysts had estimated $1.80.

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