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APPLIED MATERIALS, INC.

(AMAT)
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Delayed Nasdaq  -  04:00:00 2023-02-03 pm EST
119.98 USD   -3.44%
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Applied Materials cuts quarterly revenue, profit estimates on China export curbs

10/12/2022 | 04:36pm EST

Oct 12 (Reuters) - Chip-making technology supplier Applied Materials Inc said on Wednesday export restrictions to China would result in a $250 million-$550 million loss in net sales in the quarter ending Oct. 30, with a similar impact expected in the following three months.

Under sweeping new regulations announced by the Biden administration on Friday, U.S. companies must cease supplying Chinese chipmakers with equipment that can produce relatively advanced chips unless they first obtain a license.

Applied Materials became the first U.S. semiconductor company to put a dollar figure to the perceived impact. The company's stock was down 1.6% in extended trade.

China accounted for 29% of Applied Materials' total sales in 2021, according to Evercore ISI analyst C.J. Muse.

Sales of tool-makers including KLA Corp, Lam Research Corp and Applied Materials are expected to be affected by 5% to 10%, Muse wrote in a recent note, and that any retaliatory measure from China could further impact revenue.

Applied Materials said the restrictions would reduce its fourth-quarter net sales by about $400 million, plus or minus $150 million. Adjusted profit is expected to be $1.54 to $1.78 per share, down from an earlier forecast of $1.82 to $2.18.

Consequently, it has revised fourth-quarter revenue outlook to $6.15 billion to $6.65 billion, compared with the prior forecast of $6.25 billion to $7.05 billion and lower than analysts' estimate of $6.67 billion, according to Refinitiv data.

"Applied is pursuing additional export licenses and authorizations where needed," the company said.

The company also said it recently received a subpoena from the U.S. Attorney's Office for the District of Massachusetts requesting information relating to its customers in China.

Applied Materials' warning comes as the global chip industry already faces major headwinds from tumbling demand post-COVID in computers, smartphones and other electronic devices. (Reporting by Arunima Kumar and Yuvraj Malik in Bengaluru; Editing by Krishna Chandra Eluri)


ę Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
APPLIED MATERIALS, INC. -3.44% 119.98 Delayed Quote.27.60%
EVERCORE INC. 1.16% 134.23 Delayed Quote.21.64%
KLA CORPORATION -1.45% 408.27 Delayed Quote.9.87%
LAM RESEARCH CORPORATION -2.18% 529.25 Delayed Quote.28.73%
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Financials (USD)
Sales 2023 24 141 M - -
Net income 2023 5 431 M - -
Net cash 2023 881 M - -
P/E ratio 2023 18,7x
Yield 2023 0,91%
Capitalization 101 B 101 B -
EV / Sales 2023 4,15x
EV / Sales 2024 4,23x
Nbr of Employees 33 000
Free-Float 41,4%
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Number of Analysts 31
Last Close Price 119,98 $
Average target price 121,44 $
Spread / Average Target 1,22%
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Managers and Directors
Gary E. Dickerson President, Chief Executive Officer & Director
Brice A. Hill Chief Financial Officer & Senior Vice President
Thomas J. Iannotti Independent Chairman
Omkaram Nalamasu Chief Technology Officer & Senior Vice President
Jay O. Kerley Chief Information Officer & Senior Vice President
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