Applied Materials (AMAT) has delivered financial results for the year’s second quarter that surpassed Wall Street estimates across the board.
The company, which makes equipment used in the manufacture of microchips, reported earnings per share of $3.50 U.S., ahead of analysts’ consensus estimates of $3.40 U.S.
Revenue in the quarter totaled $9.12 billion U.S., beating Wall Street forecasts of $9 billion U.S. Sales were up 25% from a year earlier.
Despite the top and bottom-line beats, Applied Materials’ stock fell 5% in after hours trading following the release of the company’s earnings report.
Analysts have been quick to say that the stock is reacting to overly high expectations tied to the artificial intelligence (A.I.) buildout, and after AMAT stock has doubled this year.
Looking ahead, management at Applied Materials said that they expect revenue of $10.25 billion U.S., plus or minus $500 million U.S., for the current quarter.
Earnings in the year’s third quarter are estimated at $4.02 U.S. a share, plus or minus $0.20 U.S. Analysts had forecast revenue of $9.55 billion U.S. and earnings of $3.71 U.S. per share.
Applied Materials’ management team said the company continues to benefit from the A.I. infrastructure boom.
Most of the company’s business is tied to microchip and semiconductor foundries, as well as logic equipment used to make semiconductors.
Prior to today (Aug. 13), Applied Materials’ stock had risen 184% over the last 12 months to trade at $534.54 U.S. per share.
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