Applied Materials, Inc. (NASDAQ:AMAT) shares fell more than 7% in Friday's early dealing, to $143.80, as reports of a Justice Department investigation overshadowed overwise upbeat quarterly financial results.
Exports allegedly routed through South Korea and into China are being probed by the US authorities, according to a report by Reuters.
The company, in a statement, said it was 'cooperating with the government and remains committed to compliance and global laws, including export controls and trade regulations'.
Meanwhile, the semiconductor maker’s fourth-quarter financial results came in higher than Street expectations and it gave investors upbeat guiandance.
Applied Material saw its 4Q adjusted earnings per share (EPS) increase 4% year over year to $2.12, topping the $1.99 analyst consensus forecast. The company also generated revenue for the period of $6.72 billion, which was flat year over year but better than the $6.52 billion consensus estimate.
"Applied Materials delivered record revenue, earnings and cash flow in fiscal 2023 and is outgrowing the wafer fabrication equipment market for the fifth year in a row," CEO Gary Dickerson said in a statement.
Looking ahead, the company sees its 1Q 2024 EPS coming in between $1.72 to $2.08 on revenue of $6.07 billion to $6.87 billion. Analysts were expecting EPS of $1.69 and revenue of $5.86 billion.