Shares of Applied Materials Inc. fell in Thursday’s extended session after the semiconductor manufacturing equipment maker missed its earnings, revenue and guidance and pointed to ongoing supply chain issues. supply.
AMAT Applied Materials,
reported net income of $1.54 billion, or $1.75 per share, for the fiscal second quarter. Adjusted earnings, which excluded the effects of stock-based compensation and other items, were $1.85 per share, compared with $1.63 per share a year ago. Revenue reached $6.25 billion, compared to $5.58 billion in the year-ago quarter.
Analysts polled by FactSet had expected adjusted earnings of $1.90 per share on revenue of $6.35 billion. The shares were down about 5% in after-hours trading, after falling 0.5% in the regular session to close at $110.74. The stock has fallen around 10% over the past 12 months, in line with the performance of the S&P 500 SPX index,
Demand for equipment manufactured by Applied Materials is high, as manufacturers of silicon wafers, known as fabs or “fabs,” have received more orders than capacity during the COVID-19 pandemic. 19, as the semiconductors needed to make electronics, cars and other products have been in short supply for about two consecutive years. However, Applied Materials also needs chips and other components to manufacture its equipment and has faced similar supply chain issues.
“Demand for Applied Materials’ products and services has never been stronger, but we remain constrained by ongoing supply chain issues,” Chief Executive Gary Dickerson said in a statement.
For the third quarter, Applied Materials expects adjusted earnings of $1.59 to $1.95 per share on sales of $5.85 billion to $6.65 billion. Analysts on average had expected adjusted earnings of $2.04 per share on revenue of $6.68 billion, according to FactSet.
Other manufacturing equipment suppliers have noted in unison that their sales are being held back by supply constraints amid strong demand, as seen in earnings reports from ASML Holding NV. ASML,
Lam Research Corp. LRCX,
and KLA Corp. KLAC,
back in April.