Applied Materials Inc. reported better-than-expected quarterly results and announced a strong forecast for the current quarter as the world’s largest semiconductor industry tool provider.
Stocks rose about one percent in trade after the song on Thursday, and fell nearly two percent shortly after the announcement of the results.
Worldwide deliveries of PCs, smartphones and tablets will exceed 2,018,235,000,000 units, an increase of 2.0 percent over 2017, according to the Gartner research report in October.
Although used for the rapid sales of smartphones, Applied Materials also wants to take advantage of new technologies such as artificial intelligence, large amount of data, machine learning, greater reality and autonomous driving.
“The semiconductor business has a big momentum in the new generation, like KI and other parts of the food chain,” said Daniel Ives, an analyst at GBH Insights.
The company is headquartered in Santa Clara, California. It forecast adjusted earnings per share of 94 cents, at $ 1.02, and net revenues of $ 4.00 to $ 4.20 billion for the current quarter.
According to Thomson Reuters I / B / E / S, the forecasts were much higher than the analyst’s average estimate of 91 cents and $ 3.96 billion in earnings.
The company said net income increased 61 percent to $ 982 million in the fourth quarter. Without items, the company earned 93 cents per share, 2 cents higher than analysts’ estimates.
Total net income increased by 20.4 percent to $ 3,970 million. Analysts expect $ 3.94 billion
Sales of television, PC and smartphones increased almost 50 percent to $ 677 million, surpassing the analysts’ estimate of $ 452 million.
“The demand for new display technologies is huge, while the average screen size for TVs and mobile devices has increased dramatically,” said Gary Dickerson, executive director on the next call.
Half-yearly revenues, the company’s largest company, increased by 14.3 percent to $ 2,430 million, surpassing analysts’ estimate of $ 2.13 billion.