Applied Materials Shares Off 7% as 1Q Guidance Misses Wall Street Targets

By Maria Armental

Applied Materials Inc.'s first-quarter outlook missed Wall Street targets, sending shares down 7% to $148.02 in after-hours trading.

The company said it expects $1.78 to $1.92 a share in adjusted profit and about $6.16 billion in sales. Analysts surveyed by FactSet expect an adjusted profit of $2.01 a share and about $6.5 billion in net sales.

In the most recent quarter, ended Oct. 31, the company reported $6.12 billion in revenue, at the low end of its guidance range and short of Wall Street expectations, according to FactSet.

Company officials attributed the revenue results to supply chain challenges. "Demand for semiconductors and equipment continues to grow as the pandemic accelerates digital transformation of the economy, and currently, our supply chain cannot keep up," Chief Executive Gary Dickerson said in a statement, adding: "We expect supply shortages of certain silicon components to persist in the near-term, and managing these constraints in partnership with our suppliers and chipmakers is our top priority."

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(END) Dow Jones Newswires

11-18-21 1634ET