Applied Materials logged higher revenue and profit on increased demand for chips and electronic devices in its fiscal fourth quarter, but issued a lower-than-expected sales outlook for the first quarter. The company guided for first-quarter adjusted earnings of $2.29, plus or minus 18 cents, and revenue of $7.15 billion, plus or minus $400 million. Wall Street forecasts adjusted earnings of $2.27 and revenue of $7.24 billion. Shares fall 5.7%, to $175.58, in after-hours trading.
Despegar.com swung to a profit and posted higher-than-expected third-quarter revenue. The Latin American travel-technology company posted a profit attributable to the shareholders of $1.3 million, or 2 cents a share, compared with a loss of $8.2 million, or 11 cents a share, in last year's same quarter. Revenue rose 9% to $193.9 million, ahead of the $189.9 million that analysts were looking for. It now expects adjusted Ebitda of $170 million for the year, up from $160 million. CEO Damian Scokin said demand was strong in the quarter, boosted by the company's technologies, local expertise and inventory. Shares rise 16%, to $17.24, in postmarket trading.
Applied Materials, Inc. specializes in the design, manufacture, and marketing of equipment for producing integrated circuits and semi-conductor components. The group develops systems used in the principal manufacturing stages of microchips (deposition systems using chemical vapors, the physical process or through epitaxy, photomasking systems, control programs, etc.).
Net sales break down by activity sector as follows: semiconductor industry (73.3%), flat screen industry (22.5%) and other (4.2%; photovoltaic and electronic industries).
Net sales are distributed geographically as follows: the United States (10.8%), China (30.1%), Taiwan (24.2%), Korea (19.8%), Japan (8%), Asia (3.8%) and Europe (3.3%).
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