Applied Materials forecast disappoints on supply chain woes

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Nov 18 (Businesshala) – Applied Materials Inc (AMAT.O) on Thursday forecast first-quarter sales and profit below market estimates, as the pandemic disrupts supply chains and prevents the company from fulfilling customer orders. , sending its shares down about 6%. expanded business.

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Lockdowns in parts of Asia have made raw material sourcing and production difficult, fueling red-hot chip demand driven by 5G adoption and higher sales of phones, laptops and gaming consoles as consumers spend more time online.

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The company, which makes machines used to manufacture chips and other high-tech components, earned $6.16 billion, plus or minus $6.16 billion, compared to analysts’ estimates of $6.50 billion, according to Refinitiv IBES data. expects current-quarter net sales of 250 million.

Applied Materials, which counts top chipmakers such as Intel Corp (INTC.O) and Taiwan Semiconductor Manufacturing Co Ltd (2330.TW) as its customers, earned between $1.78 and $1.92 per share, compared to estimates of $2.01 per share. Also estimates adjusted earnings between shares.

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For the fourth quarter, the company’s sales rose 31% to $6.12 billion, which fell short of estimates of $6.35 billion.

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Reporting by Nivedita Balu in Bengaluru; Editing by Devika Shyamnath

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