Applied Materials Seeks Growth From New Products

Applied Materials (AMAT), a supplier of equipment and software to semiconductor manufacturers, said late on Thursday new products under development would deliver growth in the future, after reporting a drop in year-on-year adjusted earnings and sales that was smaller than the market had expected in the fiscal third quarter.

Net sales at the Santa Clara, Calif.-based group fell by 14% to $3.56 billion during the three months that ended July 28, from $4.16 billion a year ago, but were still slightly ahead of the $3.53 billion average analyst estimate compiled by Capital IQ.

Adjusted net income also slumped, declining to $0.74 per diluted share from $1.04 per diluted share but still beat the $0.70 per share consensus.

“Applied Materials is delivering solid financial performance in a market environment that remains challenging for the time being,” Chief Executive Officer Gary Dickerson said in its earnings statement. “We are fully funding our research and development programs to develop new products and capabilities that will underpin our growth in the years ahead.”

Looking ahead to the final three months of fiscal 2019, the firm expects net sales between $3.54 billion and $3.84 billion, in line with the $3.68 billion market forecast. Pro-forma diluted earnings per share are set to come in the range of $0.72 and $0.80, which is also in line with the $0.76 per share Street’s view.

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