Applied Materials Misses Quarterly Targets Amid Coronavirus Disruptions – Investor's Business Daily
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Semiconductor equipment maker Applied Materials (AMAT) late Thursday missed Wall Street’s targets for its fiscal second quarter as the coronavirus pandemic disrupted its operations. But the earnings report sent AMAT stock higher in extended trading.
The Santa Clara, Calif.-based company earned an adjusted 89 cents a share on sales of $3.96 billion in the quarter ended April 26. Analysts expected Applied Materials earnings of 95 cents a share on sales of $4.15 billion. On a year-over-year basis, Applied Materials earnings rose 27% while sales climbed 12%.
Applied Materials withdrew its guidance for the second quarter on March 23, citing manufacturing and supply-chain disruptions from the Covid-19 pandemic.
“As we navigate the challenges created by Covid-19, we have rallied the company around safety, productivity and keeping our customers and the industry moving forward,” Chief Executive Gary Dickerson said in a news release. “While the situation remains fluid, based on the visibility we have today, our supply chain is recovering, and underlying demand for our semiconductor equipment and services remains robust.”
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The chip gear maker did not give guidance for the current quarter in its earnings announcement. Wall Street has been modeling Applied Materials earnings of 93 cents a share on sales of $4.13 billion for the July quarter. That would translate to year-over-year increases of 26% in earnings and 16% in revenue.
In after-hours trading on the stock market today, AMAT stock initially dropped on the news but then recovered. In recent trades, it was up 3.1%, near 56.20. During the regular session, AMAT stock surged 5.7% to 54.43.
AMAT stock ranks No. 33 on the IBD 50 list of top-performing growth stocks.
Elsewhere in the chip sector, semiconductor equipment supplier Nova Measuring Instruments (NVMI) topped estimates for its first quarter early Thursday.
Israel-based Nova earned an adjusted 47 cents a share on sales of $61 million in the March quarter. Analysts expected Nova earnings of 36 cents a share on sales of $56.9 million. On a year-over-year basis, Nova earnings rose 27% while sales grew 8%.
For the current quarter, Nova expects to earn 44 cents a share on sales of $62 million. That’s based on the midpoint of its outlook. Analysts were looking for earnings per share of 33 cents on sales of $55.7 million. In the year-earlier period, it earned 32 cents on sales of $51.1 million.
Nova stock jumped 8.5% to 43.32 during the regular session Thursday. Nova reported quarterly results before the market open, and Applied Materials followed after the close.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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