Applied Materials' Stock Falls 3.1% Despite Solid Earnings

Company Reports Strong Top and Bottom Line Results

Applied Materials (AMAT) shares fell 3.1% in after-hours trading on Thursday, despite the company reporting solid third-quarter earnings and revenue. The semiconductor equipment maker reported earnings per share (EPS) of $1.86, beating analysts' estimates of $1.82.

Revenue for the quarter came in at $6.25 billion, also exceeding expectations of $6.17 billion. Applied Materials also raised its guidance for the fourth quarter, projecting EPS of $1.93-$2.03 and revenue of $6.4-$6.7 billion.

Reasons for the Stock Decline

Despite the strong results, investors may have been disappointed by Applied Materials' guidance for the fourth quarter, which was slightly below consensus estimates. Additionally, the company's gross margin came in at 45.4%, slightly below the 46.2% expected by analysts.

Overall, Applied Materials' third-quarter results were strong, but the stock's decline in after-hours trading suggests that investors may have been expecting more.

Key Takeaways

• Applied Materials reported EPS of $1.86, beating estimates of $1.82.
• Revenue came in at $6.25 billion, exceeding expectations of $6.17 billion.
• The company raised its guidance for the fourth quarter, projecting EPS of $1.93-$2.03 and revenue of $6.4-$6.7 billion.
• The stock fell 3.1% in after-hours trading, possibly due to slightly below-consensus guidance and a lower-than-expected gross margin.