Applied Materials Inc (Nasdaq: AMAT) is slipping in extended trading even though it reported market-beating financial results for its second quarter.
Applied Materials stock down on muted guidance
The stock is taking a hit because the guidance failed to impress. AMAT forecasts about $6.65 billion in revenue on up to $2.19 a share of earnings in Q3. Street had called for $6.08 billion and $1.83 per share, respectively.While the outlook did surpass expectations, investors still did not receive it well as it indicated revenue may remain roughly unchanged again in the current quarter. Nonetheless, Gary E. Dickerson – the chief executive of Applied Materials said in a press release today:
Applied Materials has the most enabling portfolio of materials engineering technologies for chips that underpin tectonic shifts in technology which puts us in a great position to grow along with these long-term, secular trends.
The Nasdaq-listed firm saw its semiconductor systems revenue slip close to 2.0% in the recently concluded quarter which was offset by gains in global services and display and adjacent markets revenues. Applied Materials stock is now up roughly 40% versus its year-to-date low.
Applied Materials Q2 earnings snapshot
Applied Materials raised its quarterly dividend by about 25% in March to 40 cents per share. CEO Dickerson also said on Thursday.
Applied Materials continues to deliver strong performance in 2024, with fiscal second quarter revenue and earnings towards the high end of our guided range.
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