Latest news with #GaryDickerson
Mint
3 days ago
- Business
- Mint
Applied Materials Suffers Worst Rout Since 2020 on China Woes
Applied Materials Inc. suffered the worst single-day stock decline in five years after giving a disappointing sales and profit forecast, renewing concerns that the US trade dispute with China is weighing on demand. Revenue will be approximately $6.7 billion in the fiscal fourth quarter, the company said in a statement Thursday. Analysts had estimated $7.32 billion on average. Profit will be about $2.11 a share, excluding some items, compared with a projection of $2.38. Applied Materials, the largest American producer of chipmaking gear, is seeing less demand from customers in China, Chief Executive Officer Gary Dickerson said in an interview. It also faces delays in approval for exporting technology to that country, he said. Moreover, large customers are putting off some purchases in the face of prolonged negotiations around tariffs and other economic issues. 'It just creates a level of uncertainty,' Dickerson said. The outlook sent shares of Applied Materials down 14% on Friday, the most since the early days of the pandemic in March 2020. They had been up 16% this year heading into the report. In the third quarter, which ended July 27, revenue rose 7.7% to $7.3 billion. Analysts had anticipated $7.21 billion on average, according to data compiled by Bloomberg. Profit was $2.48 a share, compared with an estimate of $2.36. Applied Materials' customer ranks include some of the biggest names in the chip industry, such as Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Intel Corp. Those manufacturers order gear well ahead of starting production, making Applied Materials' forecasts a barometer for future demand. The company said last week that it would participate in an Apple Inc. plan to boost manufacturing in the US by spending more than $200 million on a facility in Arizona. Applied Materials will also sell equipment to Texas Instruments Inc.'s US factories to support Apple products. 'Applied Materials' decision to be a core member of Apple's 'American Manufacturing Program,' a drive to increase factory production within the US, could strengthen its position as a key supplier of chipmaking tools for advanced semiconductors used in iPhones,' Bloomberg Intelligence analyst Masahiro Wakasugi said in a note. 'The new administration is very focused on increasing semiconductor supply in the United States,' Dickerson said on Thursday. 'We're very positive.' In July, rival Lam Research Corp. said revenue for the quarter ending in December would ease from the current-quarter levels, with Chinese customers potentially scaling back after a spending spree. In a further sign of US-China tensions, Applied Materials was recently sued by Beijing E-Town Semiconductor Technology Co. over what that company characterized as trade secret theft. Still, Dickerson said the long-term demand outlook for computing power remains strong. Customers in China had significantly ramped up buying in recent years, and are now just digesting those purchases, he said. This article was generated from an automated news agency feed without modifications to text.
Yahoo
4 days ago
- Business
- Yahoo
Applied Materials' shares sink on weak China demand, tariff uncertainty
By Kanchana Chakravarty (Reuters) -Applied Materials shares slid about 12% in morning trading on Friday after the company issued disappointing sales and profit forecast, stoking investor concerns that the U.S.-China trade dispute was eroding demand. The chip-equipment maker joined Dutch rival ASML Holding in flagging continued uncertainty over the impact of U.S. tariffs, as two of the industry's biggest players grapple with weakening demand. Applied Materials CEO Gary Dickerson flagged lower visibility and increased uncertainty in the near-term during a post-earnings call, citing "wide-ranging implications for the semiconductor industry" from the dynamic policy environment. China, Applied Materials' top revenue source in the July quarter accounting for 35% of sales, has emerged as a growing risk for chipmaking tool suppliers as U.S. export restrictions weigh on new orders. Smaller rival KLA Corp, which also has a significant presence in China, said last month it expects softer demand as Sino-U.S. trade tensions weigh on spending by Chinese chipmakers. "China volatility is significantly clouding visibility into core earnings potential both geopolitically and cyclically," Deutsche Bank strategists said in a note. Applied Materials expects revenue of $6.70 billion, plus or minus $500 million, for the fourth quarter, compared with analysts' average estimate of $7.33 billion, according to data compiled by LSEG. Its projected profit also came in below estimates. If current losses hold, the company is set to lose more than $18 billion of its $151.06 billion market value as of Thursday's close. analyst Harlan Sur, however, noted the slowdown in China demand and erratic orders from major foundry customers are "more a reflection of timing of spending rather than structural issues." The stock has risen 1.2% so far this year, compared with a 12.3% increase in the Nasdaq index and a 10% gain in the S&P 500 index. Shares of chip-equipment makers KLA Corp and Lam Research fell 5.5% and 4.3%, respectively, after Applied's results. The company's third-quarter revenue rose 8% to $7.30 billion from a year ago, beating estimates of $7.22 billion. Applied's stock trades at 19 times its estimate for earnings per share over the next 12 months, according to data compiled by LSEG. This trails ASML's ratio of 26.04 times similar earnings estimate, Lam's 23.56 and KLA's 26.82. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
4 days ago
- Business
- Time of India
Applied Materials' shares sink on weak China demand, tariff uncertainty
By Kanchana Chakravarty Applied Materials shares slid about 15% in premarket trading on Friday after the company issued disappointing sales and profit forecast, stoking investor concerns that the U.S.-China trade dispute was eroding demand. The chip-equipment maker joined Dutch rival ASML Holding in flagging continued uncertainty over the impact of U.S. tariffs, as two of the industry's biggest players grapple with weakening demand. Applied Materials CEO Gary Dickerson flagged lower visibility and increased uncertainty in the near-term during a post-earnings call, citing "wide-ranging implications for the semiconductor industry " from the dynamic policy environment. China, Applied Materials' top revenue source in the July quarter accounting for 35% of sales, has emerged as a growing risk for chipmaking tool suppliers as U.S. export restrictions weigh on new orders. Smaller rival KLA Corp, which also has a significant presence in China, said last month it expects softer demand as Sino-U.S. trade tensions weigh on spending by Chinese chipmakers. "China volatility is significantly clouding visibility into core earnings potential both geopolitically and cyclically," Deutsche Bank strategists said in a note. Applied Materials expects revenue of $6.70 billion, plus or minus $500 million, for the fourth quarter, compared with analysts' average estimate of $7.33 billion, according to data compiled by LSEG. Its projected profit also came in below estimates. If current losses hold, the company is set to lose more than $22 billion of its $151.06 billion market value as of Thursday's close. analyst Harlan Sur, however, noted the slowdown in China demand and erratic orders from major foundry customers are "more a reflection of timing of spending rather than structural issues." The stock has risen 15.7% so far this year, compared with a 12.5% increase in the Nasdaq index and a nearly 10% gain in the S&P 500 index. Shares of chip-equipment makers KLA Corp and Lam Research fell more than 5% each after Applied's results. The company's third-quarter revenue rose 8% to $7.30 billion from a year ago, beating estimates of $7.22 billion. Applied's stock trades at 19 times its estimate for earnings per share over the next 12 months, according to data compiled by LSEG. This trails ASML's ratio of 26.04 times similar earnings estimate, Lam's 23.56 and KLA's 26.82.
Time of India
4 days ago
- Business
- Time of India
US markets today: Dow up 141 points as Wall Street eyes record week finish, UnitedHealth jumps on Buffett stake
US stocks hovered near record highs on Friday as Wall Street moved towards closing another winning week, buoyed by hopes that the Federal Reserve will cut interest rates in September. The S&P 500 was virtually unchanged in early trade, a day after notching a fresh all-time high, and was on track for its fourth winning week in the last five. The Dow Jones Industrial Average was up 141 points, or 0.3%, while the Nasdaq composite slipped 0.1%, according to AP. Investor optimism has grown on expectations of a September rate cut, which could boost asset prices and spur economic activity by lowering borrowing costs for US households and businesses. However, lower rates also risk fuelling inflation. A weaker-than-expected US wholesale inflation report on Thursday trimmed some of the rate-cut optimism, but traders still largely expect the Fed to act. Treasury yields have retreated sharply in recent days and were steady on Friday. Economic data released Friday painted a mixed picture: US retail sales rose as forecast in July, manufacturing in New York state unexpectedly expanded, but nationwide industrial production fell, missing expectations for modest growth. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Most Beautiful Female Athletes Right Now Undo Later in the day, a consumer sentiment report on inflation and the economy was awaited. On Wall Street, UnitedHealth Group soared 10.3% after Warren Buffett's Berkshire Hathaway disclosed the purchase of nearly 5 million shares in the insurer during the spring, valued at $1.57 billion. Berkshire Hathaway shares gained 0.2%. Applied Materials fell 12.5% despite posting quarterly results above analyst forecasts, as its revenue guidance for the current quarter disappointed investors. CEO Gary Dickerson cited a 'dynamic macroeconomic and policy environment' creating uncertainty, particularly for the company's China business. Sandisk dropped 4.9% after its upbeat quarterly profit was overshadowed by a weaker-than-expected profit outlook. In Asia, Japan's Nikkei 225 rose 1.7% on stronger-than-expected GDP growth, while Shanghai gained 0.8% and Hong Kong's Hang Seng shed 1% after data showed China's economy slowed across key indicators in July, prompting calls for more policy support. ING Economics noted, 'Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year. After a strong start, several months of cooling momentum suggest that the economy may need further policy support.' European markets traded mixed ahead of a scheduled meeting between US President Donald Trump and Russian President Vladimir Putin, which could influence the direction of the war in Ukraine. In bonds, the 10-year US Treasury yield held at 4.29%, while the two-year yield slipped to 3.72% from 3.74%. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Reuters
4 days ago
- Business
- Reuters
Applied Materials' shares sink on weak China demand, tariff uncertainty
Aug 15 (Reuters) - Applied Materials (AMAT.O), opens new tab shares slid about 15% in premarket trading on Friday after the company issued disappointing sales and profit forecast, stoking investor concerns that the U.S.-China trade dispute was eroding demand. The chip-equipment maker joined Dutch rival ASML Holding ( opens new tab in flagging continued uncertainty over the impact of U.S. tariffs, as two of the industry's biggest players grapple with weakening demand. Applied Materials CEO Gary Dickerson flagged lower visibility and increased uncertainty in the near-term during a post-earnings call, citing "wide-ranging implications for the semiconductor industry" from the dynamic policy environment. China, Applied Materials' top revenue source in the July quarter accounting for 35% of sales, has emerged as a growing risk for chipmaking tool suppliers as U.S. export restrictions weigh on new orders. Smaller rival KLA Corp (KLAC.O), opens new tab, which also has a significant presence in China, said last month it expects softer demand as Sino-U.S. trade tensions weigh on spending by Chinese chipmakers. "China volatility is significantly clouding visibility into core earnings potential both geopolitically and cyclically," Deutsche Bank strategists said in a note. Applied Materials expects revenue of $6.70 billion, plus or minus $500 million, for the fourth quarter, compared with analysts' average estimate of $7.33 billion, according to data compiled by LSEG. Its projected profit also came in below estimates. If current losses hold, the company is set to lose more than $22 billion of its $151.06 billion market value as of Thursday's close. analyst Harlan Sur, however, noted the slowdown in China demand and erratic orders from major foundry customers are "more a reflection of timing of spending rather than structural issues." The stock has risen 15.7% so far this year, compared with a 12.5% increase in the Nasdaq index (.IXIC), opens new tab and a nearly 10% gain in the S&P 500 index (.SPX), opens new tab. Shares of chip-equipment makers KLA Corp and Lam Research (LRCX.O), opens new tab fell more than 5% each after Applied's results. The company's third-quarter revenue rose 8% to $7.30 billion from a year ago, beating estimates of $7.22 billion. Applied's stock trades at 19 times its estimate for earnings per share over the next 12 months, according to data compiled by LSEG. This trails ASML's ratio of 26.04 times similar earnings estimate, Lam's 23.56 and KLA's 26.82.
