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App Materials blames supply chain problems for missed earnings and forecasts, shares fall from record high

Shares of Applied Materials Inc. fell from record highs in after-hours trading on Thursday, after the company’s record year ended with sky-high total revenue and profit.

The chip-making equipment maker cited supply chain troubles when it posted quarterly revenue that fell short of its guidance and said it hoped the issues would also affect its results. current quarter. Application materials
AMAT,
+ 1.77%

shares fell 5% in a few hours, after gaining about 1.8% in normal trading, to close at $158.74.

The chip-making equipment maker said fiscal fourth-quarter revenue rose to $6.12 billion from $4.69 billion in the previous quarter. It posted net income of $1.71 billion, or $1.89 a share, compared with $1.13 billion, or $1.23 a share, over the one-year period. prior to. Adjusted for stock-based compensation, depreciation and amortization, deferred tax and more, earnings came in at $1.94 a share.

Analysts surveyed by FactSet had forecast adjusted earnings of $1.96 a share on revenue of $6.39 billion.

Applied Materials expected first-quarter earnings of $2.01 a share on revenue of $6.16 billion, while analysts had forecast $2.01 a share on $6.5 billion in revenue.

Applied Materials posted strong gains amid shortages affecting the entire semiconductor industry, prompting many chipmakers to ramp up production plans with their equipment. For the full year, Applied Materials reported record net income of $5.89 billion, or $6.40 a share, and record revenue of $23.06 billion, up 34% from with the previous financial year.

However, due to the Q4 miss, the annualized numbers fell short of analysts’ estimates of $23.31 billion in revenue and $6.32 billion in earnings, or $6.44. stock.

Shares of the Silicon Valley-based company are up nearly 84% so far this year, while the S&P 500 index
SPX,
+ 0.34%

has increased by about 25% year to date. Shares closed at an all-time record on Thursday ahead of the report.

https://www.marketwatch.com/story/applied-materials-blames-supply-chain-problems-for-earnings-and-forecast-miss-stock-drops-from-record-high-11637271817?rss=1&siteid=rss App Materials blames supply chain problems for missed earnings and forecasts, shares fall from record high

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