Applied Materials stock falls after earnings beat, weak guidance

Applied Materials Inc. AMAT, -0.17% shares fell 3.7% in the extended session Thursday after the company beat on the top and bottom line but issued weaker-than-expected guidance for the fiscal fourth quarter. The chip and display maker reported fiscal third-quarter net income of $1.17 billion, or $1.17 a share, compared with $925 million, or 85 cents a share, in the year-ago period. Adjusted for items related to acquisitions and taxes, among other things, earnings were $1.20 a share. Revenue rose to $4.47 billion from $3.74 billion in the year-ago period. Analysts surveyed by FactSet had estimated adjusted earnings of $1.17 a share on revenue of $4.43 billion. For the fiscal fourth quarter, analysts expect adjusted earnings of $1.17 a share on sales of $4.46 billion. The company said it expects earnings adjusted for completed acquisitions and stock-based compensation of 92 cents to $1 a share and sales of $3.85 billion to $4.15 billion. Applied Materials stock closed down 0.2% to $47.43 during the regular session, as the S&P 500 index SPX, +0.79% gained 0.8%.

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