Chip gear maker Applied Materials reported fiscal third-quarter revenue that fell from a year earlier but topped expectations. AMAT stock jumped Friday on the news, as the company also offered a forecast that was well ahead of views.
After the close Thursday, Applied Materials said earnings dipped 2% to $1.90 per share for the quarter ended July 30. Revenue fell 1% to $6.43 billion, said the Santa Clara, Calif.-based company.
Analysts polled by FactSet had expected earnings of $1.74 a share on sales of $6.15 billion.
"Over the past several years, we have focused our strategy and investments on key technologies to accelerate the Internet of Things and AI era, enabling us to consistently deliver strong results in 2023 and positioning Applied Materials for sustainable outperformance," Chief Executive Gary Dickerson said in the earnings press release.
AMAT Stock: Forecast Tops Analyst Projections
The company also projected demand for the current quarter that was ahead of analyst expectations. Applied Materials predicted adjusted earnings of $2 a share on sales of $6.51 billion for its fiscal fourth quarter, based on the midpoint of its outlook.
Analysts, meanwhile, had called for earnings of $1.59 a share on sales of $5.87 billion.
On the stock market today, AMAT stock surged 3.7% to close at 142.66. During the regular session Thursday, AMAT stock edged down by less than 1%. Heading into the AMAT earnings report, shares had gained 44% in 2023.
According to IBD MarketSmith charts, AMAT stock holds a Relative Strength Rating of 91 out of a best-possible 99. Applied Materials has an IBD Composite Rating of 98 out of 99.
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