UPDATE: Applied Materials Posts 54% Drop In FQ3 Earnings, Issues Downbeat FQ4 Forecast

Applied Materials AMAT reported a 54% decline in its fiscal third-quarter earnings and issued a downbeat forecast for the fiscal fourth-quarter. Applied Materials' quarterly net income fell to $218 million, or $0.17 per share, from $476 million, or $0.36 per share, in the year-ago period. Its adjusted earnings were $0.24 per share. Its revenue dropped 16% to $2.34 billion. However, analysts were projecting earnings of $0.22 per share on revenue of $2.3 billion. Applied Materials expects FQ4 earnings in the range of 0-6 cents a share, versus analysts' estimates of $0.12 per share. It expects sales to decline between 25% and 40% versus the July period. However, analysts were expecting a 16% drop in sales. Applied Materials shares fell 3.98% to $11.33 in after-hours trading.