Applied Materials slips amid mixed Q2 results

Applied Materials (NASDAQ:AMAT) shares fell 2.7% in extended trading on Wednesday after the semiconductor equipment firm reported mixed fiscal second-quarter results.

For the period ending April 27, Applied Materials said it earned an adjusted $2.39 per share as revenue rose 6.8% year-over-year to $7.1B. Revenue attributed to semiconductor systems rose 7.2% to $5.26B, while applied global services net sales rose 2.4% year-over-year to $1.57B. Display and Adjacent Markets net sales jumped 45% year-over-year to $259M.

Analysts had expected Applied Materials to earn an adjusted $2.31 per share on $7.13B in revenue.

“We delivered strong performance in our second fiscal quarter with seven percent year-over-year revenue growth, record earnings per share and shareholder distributions of nearly $2 billion,” said Brice Hill, Senior Vice President and CFO. “Despite the dynamic economic and trade environment, we have not seen significant changes to customer demand and are well-equipped to navigate evolving conditions with our robust global supply chain and diversified manufacturing footprint.”

The company said it expects third-quarter revenue to be between $6.7B and $7.7B, with the $7.2B midpoint right in-line with analyst’s estimates. Adjusted gross margin is forecast to be 48.3%, while adjusted earnings per share are expected to be between $2.15 and $2.55 per share.

Following the results, competitors such as Lam Research (LRCX), KLA Corp. (KLAC) and ASML (ASML) were lower in after-hours trading.

Applied Materials will hold a conference call at 4:30 p.m. EST to discuss the results.