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Applied Materials (AMAT) Sinks 14% After Hours
Applied Materials cut its current quarter earnings forecast due to ongoing export license backlogs and reduced demand in China, with shares falling over 10% after the announcement.
- Applied Materials reported strong third-quarter results on December 17, 2024, with earnings per share above estimates but issued a cautious outlook.
- The cautious outlook reflects ongoing uncertainty due to trade policies, export license delays, and reduced demand in China amid tariff-driven market disruptions.
- Applied Materials expects fourth-quarter revenue of $6.7 billion, below analyst estimates, driven by digestion of existing chipmaking capacity in China and uneven orders from advanced customers.
- CEO Gary Dickerson highlighted that ongoing economic and policy challenges are leading to greater uncertainty and reduced clarity, particularly impacting the company’s operations in China, but maintained a positive outlook on growth prospects in artificial intelligence and robotics over the long term.
- Shares of Applied Materials dropped more than 13% in after-hours trading following the lowered guidance, signaling investor concern over near-term demand despite the company's positive long-term prospects.
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Applied Materials Gives Downbeat Forecast in Sign of Trade Woes
Applied Materials Inc., the largest American producer of chipmaking gear, gave a disappointing sales and profit forecast for the current period, signaling that the US trade dispute with China will weigh on demand.
·United States
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Total News Sources15
Leaning Left2Leaning Right2Center4Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 25%
C 50%
R 25%
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