Why Applied Materials Stock Is Sliding After Hours

Applied Materials Inc AMAT shares are trading lower in Thursday's after-hours session after the company reported worse-than-expected financial results and issued earnings guidance below analyst estimates.

Applied Materials said fiscal second-quarter revenue increased 12% year-over-year to $6.25 billion, which came in below the $6.37-billion estimate. The company reported quarterly adjusted earnings of $1.85 per share, which came in below the estimate of $1.90 per share.

"Demand for Applied Materials' products and services has never been stronger, yet we remain constrained by on-going supply chain issues," said Gary Dickerson, president and CEO of Applied Materials.

Applied Materials said it expects fiscal third-quarter revenue to be $6.25 billion, plus or minus $400 million versus the $6.73-billion estimate. The company expects quarterly adjusted earnings of $1.59 to $1.95 per share versus the estimate of $2.04 per share. 

AMAT 52-Week Range: $102.99 - $167.06

The stock was down 5.05% in after-hours at $105.15 at press time.

Photo: courtesy of Applied Materials.

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