Semiconductor equipment maker Applied Materials, Inc. ( AMAT ) late Tuesday posted an 85% jump in second quarter profits, but issued a weaker-than-expected third quarter outlook.
The Santa Clara-based company reported fiscal second quarter net income of $489 million, or 37 cents per share, compared with $264 million, or 20 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 38 cents per share.
Net sales rose 24% from last year to $2.86 billion.
On average, Wall Street analysts expected a slightly smaller profit of 37 cents per share, on lower revenue of $2.77 billion.
Looking ahead, the company forecast implied third quarter profit to range from 31 cents to 37 cents per share, on revenue of $2.57 billion to $2.77 billion. That outlook would miss analyst estimates for 39 cents per share on $2.82 billion in revenue.
Applied Materials shares fell 36 cents, or -2.6%, in premarket trading Wednesday.
The Bottom Line
Shares of Applied Materials ( AMAT ) have a 2.33% dividend yield, based on last night's closing stock price of $13.71. The stock has technical support in the $11-$12 price area. If the shares can firm up, we see overhead resistance around the $15-$16 price levels.
Applied Materials, Inc. ( AMAT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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