Applied Materials Reports Record Sales As Chip Shortage Boosts Equipment Business
Applied Materials Inc. continued to benefit from the semiconductor shortage in early 2021, as quarterly revenue hit a record high and shares rose late Thursday.
AMAT applied materials,
reported second-quarter net income of $ 1.33 billion, or $ 1.43 per share, compared to $ 755 million, or 82 cents per share, in the same period a year earlier. Adjusted earnings, which excluded the $ 154 million termination fee Applied Materials paid to a former target acquisition and other items, was $ 1.63 per share, compared to 89 cents per share at during the same period last year.
Revenue jumped to $ 5.58 billion from $ 3.96 billion in the quarter last year. Analysts polled by FactSet had forecast $ 1.51 per share on revenue of $ 5.41 billion.
Applied Materials manufactures equipment to manufacture semiconductors, which has recently been scarce as demand for electronics, cars and other chip-based products has increased amid the COVID-19 pandemic. In a statement, chief executive Gary Dickerson noted the company’s “pervasive strength” amid the shortage.
Read more: Semiconductor shortage is here to stay, but it will affect chipmakers differently
“Applied Materials’ record performance is underpinned by the overall strength of our semiconductor business,” Dickerson said in the announcement. “We are confident in our ability to outperform our markets, as secular megatrends create sustainable demand for semiconductors and our leadership in materials engineering becomes increasingly essential to deliver new chip technologies.
For the third quarter, Applied Materials executives have guided for more growth, forecasting adjusted earnings of $ 1.70 to $ 1.82 per share on sales of $ 5.72 billion to $ 6.12 billion. dollars. Analysts on average expected adjusted earnings of $ 1.56 per share on revenue of $ 5.53 billion, according to FactSet.
Shares rose more than 1% after-hours, following a 4.4% gain in regular session to close at $ 130.31. The stock has risen more than 129% in the past 12 months as the S&P 500 SPX Index,
gained 38.5%.