Applied materials The shares plunged more than 13% after the semiconductor equipment manufacturer issued low orientations because it faces pressures on demand in China.
The company provided for a profit adjusted per share of $ 2.11, down $ 2,39 per share expected by LSEG. The company projected $ 6.7 billion in income, against the estimate of $ 7.34 billion.
During a call for results with analysts, CEO Gary Dickerson said that the current macroeconomic backdrop and trade problems had fueled “growing uncertainty and lower visibility”, mainly within Chinese activities.
He also said that the directives do not take into account the requests for export license pending and assume a significant backlog.
Applied materials have also cited the weakness of advanced customers and said that Chinese customers are reducing spending after quickly increasing the manufacture of equipment in the region.
America BankVivek Arya downgraded the actions to a neutral note and lowered its course objective, citing in progress China and peak opposite winds.
“Uncertainty could persist, which makes it more difficult for the stock to surpass despite a reasonable assessment,” he wrote. “We suspect that the slowdown is more specific to the company.”
Despite the low directives, the materials applied have exceeded the profits and estimates of the third quarter income, displaying an adjusted profit of $ 2.48 per share out of $ 7.3 billion in revenues. Net profit reached $ 1.78 billion, or $ 2.22 per share, against $ 1.71 billion, or $ 2.05 per share a year ago.
