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Applied Materials Shares Decline on Gloomy Outlook (AMAT)

Semiconductor components maker Applied Materials, Inc. ( AMAT ) late Wednesday posted higher-than-expected fiscal third quarter earnings, but its relatively weak forecast sent its shares lower in aftermarket trading.

The Santa Clara, CA-based company reported fiscal third quarter net income of $476 million, or 36 cents per share, compared with $123 million, or 9 cents per share, in the year-ago period.

Revenue rose 11% from last year to $2.79 billion.

On average, Wall Street analysts expected a smaller profit of 33 cents per share, on lower revenue of $2.7 billion.

Looking ahead, the company forecast a 15% to 30% decline in sales during the current quarter, implying a range of $1.95 billion to $2.37 billion, with adjusted earnings of 16 to 24 cents per share. Analysts expect fourth quarter profits of 31 cents on much higher revenue of $2.61 billion.

Applied Materials shares fell 65 cents, or -5.7%, in premarket trading Thursday.

The Bottom Line

Shares of Applied Materials ( AMAT ) have a 2.82% dividend yield, based on last night's closing stock price of $11.36. The stock has technical support in the $9-$10 price area. If the shares can firm up, we see overhead resistance around the $13 price level.

Applied Materials, Inc. ( AMAT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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