Investing.com – Applied Materials reported better-than-expected fiscal second-quarter results on Thursday, helped by strong economic growth in China as a wave of artificial intelligence continues to drive demand for chips.
Applied Materials Inc (NASDAQ:) shares fell more than 1% in after-hours trading following the news.
For the three months ended April 28, adjusted diluted earnings per share (EPS) were $2.09, up from $2.00 year-over-year, and revenue rose to $6.65 billion from $6.63 billion, beating analysts’ expectations relative to earnings per share of $1.99 on revenue of $6.54 billion.
Sales in China more than doubled to $2.83 billion in the second quarter from $1.41 billion in the same period a year earlier, while U.S. sales fell to $853 million from $1.11 billion a year earlier.
Adjusted gross margin rose to 47.5% in the period from 46.8% a year earlier.
Looking ahead to the fiscal third quarter, the company forecast fiscal second-quarter adjusted earnings per share of between $1.83 and $2.19 per share on sales of approximately $6.65 billion, give or take $400 million. That compares with estimates Wall Street reported adjusted earnings of $1.97 per share on revenue of $6.59 billion.