Overview

• Applied Materials delivered adjusted third-quarter earnings of $2.48 per share on $7.30 billion in revenue, topping analysts’ forecasts.
• For the fourth quarter the company forecast $6.70 billion in revenue and $2.11 in adjusted EPS, compared with analysts’ expectations of $7.34 billion and $2.39.
• Executives pointed to digestion of China capacity and uneven timing of leading-edge fab investments as primary causes of the outlook shortfall.
• Management noted that pending export licenses, U.S. trade restrictions and tariff proposals have added uncertainty to near-term order visibility.
• Shares fell around 13 percent in premarket trading, wiping out more than $20 billion in market value despite management’s reassurance of longer-term growth prospects.