Applied Materials posts 3Q profit ahead of analysts’ forecasts, outlook better than expected

Applied Materials 3Q profit, outlook beat Street

SANTA CLARA, Calif. — Chip manufacturing equipment maker Applied Materials Inc. said Wednesday it posted a third-quarter profit, reversing a loss and beating analysts’ expectations as revenue more than doubled.

Net income in the three months to Aug. 1 hit $123.1 million, or 9 cents per share, reversing a loss of $54.9 million, or 4 cents per share, a year ago.

Revenue rose to $2.52 billion from $1.13 billion.

Excluding $405 million in charges for restructuring, impairments and inventory adjustments at its energy and environmental solutions segment, adjusted earnings came to 29 cents per share, the company said.

On that measure, it beat the forecast of analysts polled by Thomson Reuters of adjusted earnings of 25 cents per share on revenue of $2.38 billion.

Shares were up 4 cents at $11.42 in after-hours trading Wednesday, after dropping a penny to $11.38 in the regular session.

Applied Materials said it expects net revenue in the fourth quarter to be between flat and up 5 percent from the third quarter, suggesting revenue between $2.52 billion and $2.65 billion.

It expects fourth-quarter adjusted earnings between 28 cents and 32 cents per share.

Its outlook was also above analysts’ forecasts of earnings of 26 cents per share on revenue of $2.43 billion.