Applied Materials posted third-quarter earnings and revenue that exceeded expectations, with sales from all three major business segments surpassing forecasts.
**Key Points**
Applied Materials stated that macroeconomic uncertainty is harming its business.
The semiconductor equipment manufacturer issued current-quarter guidance that fell short of expectations.
Applied Materials delivered third-quarter earnings and revenue that beat expectations, with all three major business segments generating higher-than-expected sales.
Applied Materials (AMAT) shares fell 13% in premarket trading on Friday, following the semiconductor equipment manufacturer's weaker-than-expected guidance due to concerns about global economic conditions and tariffs impacting its business.
The company projected current-quarter adjusted earnings per share (EPS) between $1.91 and $2.31, with revenue ranging from $6.2 billion to $7.2 billion. Analysts surveyed by Visible Alpha had previously expected adjusted EPS of $2.37 and revenue of $7.3 billion.
CEO Gary Dickerson stated that Applied Materials is "currently operating in a dynamic macroeconomic and policy environment, which brings more uncertainty and lower visibility in the near term, including our business in China."
CFO Brice Hill added that the company expects revenue to decline "due to capacity digestion in the Chinese market, and given market concentration and wafer fab construction timing, demand from leading customers exhibits non-linear characteristics."
**Third-Quarter Results Beat Analyst Expectations**
The company issued this warning while reporting strong third-quarter results. Adjusted EPS reached $2.48, with revenue growing 8% year-over-year to $7.3 billion. Both figures exceeded Visible Alpha consensus expectations.
Applied Materials' three major business segments all delivered sales above expectations: Semiconductor Systems ($5.43 billion), Applied Global Services ($1.60 billion), and Display ($263 million).
As of Friday's pre-market opening, Applied Materials shares had gained more than 15% year-to-date.
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