Applied Materials Inc unveiled its second-quarter financial results that beat expectations across the board.
The semiconductor company delivered robust revenue of $6.63 billion, coming ahead of analyst estimates of $6.37 billion.
Its adjusted earnings per share also beat expectations at $2 versus $1.83.
Even more encouraging was the company’s 3Q guidance of around $6.15 billion in net sales, plus or minus $400 million. Non-GAAP adjusted diluted EPS is projected to fall within the range of $1.56 to $1.92.
Chipmakers are increasing their production efforts in response to a worldwide shortage that is impacting electronics and auto manufacturers.
Despite a slowdown in consumer-driven markets like PCs and smartphones, Applied Materials is experiencing a boost in demand from the artificial intelligence and automotive sectors, which is helping to offset the sluggish economy.
CEO Gary Dickerson told investors that the company is expecting to outperform its markets in 2023.
“Our longer-term outlook is very positive as semiconductors become a larger and more strategically important market globally and major technology inflections are enabled by materials engineering, creating outsized growth opportunities for Applied,” the CEO said.
That said, shares of Applied Materials were trading down 1.1% in after-hours trading Thursday a sign that investors might have been hoping for a more robust outlook.
Contact Angela at angela@proactiveinvestors.com
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