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Semiconductor equipment supplier Materials applied (AMAT) Thursday night exceeded analysts’ expectations for its fiscal first quarter and guided upward for the current period. AMAT stock rose on extended trading.
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The Santa Clara, California-based company earned $ 1.39 an adjusted share on sales of $ 5.16 billion in the quarter ended Jan.31. Analysts were expecting Applied Materials to earn $ 1.28 per share on sales of $ 4.97 billion. Year over year, profits were up 42% while sales were up 24%.
The company’s gross profit margin improved to 45.5% from 44.6% the previous year.
In the current quarter, Applied Materials expects to earn $ 1.50 per adjusted share on sales of $ 5.39 billion. It’s based on the midpoint of his outlook. Wall Street was forecasting earnings of $ 1.28 per share on sales of $ 4.96 billion. In the second quarter of last year, Applied Materials earned 89 cents on sales of $ 3.96 billion.
AMAT share increases at the end of trading
Today, on the after-hours stock exchange, AMAT stock alternated between modest gains and losses before turning solidly positive. In recent transactions, it was up 4.8% to nearly 118.85. In Thursday’s regular session, AMAT stock fell 2% to 113.43 on an overall day of market decline.
“During our first fiscal quarter, we saw continued acceleration in demand in our semiconductor business, with key macroeconomic and industry trends fueling growing silicon consumption across a wide range of markets and applications,” Chief Executive Officer Gary Dickerson said in a press release. .
He added: “We have strong momentum across the company, as our large portfolio and exposure to technological inflections, combined with the traction of our new products, puts us in an excellent position to significantly exceed our markets in 2021 and beyond.”
AMAT share exceeds two buying points
On November 5, AMAT stock exited an 11-week consolidation period at a buy point of 70, according to IBD MarketSmith charts. A tight three-week pattern in early January provided an additional buying point. AMAT stock hit a record 121.13 on Tuesday.
The AMAT share ranks second out of 34 shares of IBD’s semiconductor equipment industry group, according to the IBD Stock Checkup tool. In addition, AMAT stock is on the IBD 50 list of best performing growth stocks.
In addition to the AMAT stock, another stock of semiconductor equipment being released on Thursday was Ultra clean holdings (UCTT).
Ultra clean stock drop despite Beat-and-Raise report
Late Wednesday, Hayward, Calif.-Based Ultra Clean delivered a beat-and-rise report. It earned 81 adjusted cents per share, up 103% year-over-year, on sales of $ 369.6 million, up 29%, in the fourth quarter.
For the current quarter, Ultra Clean expects to earn 87 adjusted cents per share on sales of $ 390 million. It’s based on the midpoint of his advice. Wall Street was forecasting earnings of 72 cents a share on sales of $ 380.2 million in the March quarter. In the quarter of the previous year, Ultra Clean earned 52 cents a share on sales of $ 320.9 million.
Ultra Clean stock fell 4.5% to 48.42 on Thursday.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more articles on consumer technology, software, and semiconductor inventory.
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