CA: Companies In Silicon Valley
A logo sign outside the headquarters of Applied Materials, Inc., in Santa Clara, Calif. Photograph by Kris Tripplaar — Sipa USA/AP

Applied Materials Shares Slide 6% On Lower-Than-Expected Sales

Nov 17, 2016

Applied Materials Inc, the world's largest supplier of tools used to make semiconductors, reported lower-than-expected quarterly revenue, largely due to slowing smartphone sales.

The company's shares fell 6.2% to $28.82 in after-hours trading. The stock had gained 64.6% this year through Thursday's close.

Applied Materials, whose results are seen as the bellwether for the chip industry, reported a 39.2% jump in fourth-quarter revenue to $3.30 billion, but narrowly missed analysts' average estimate of $3.31 billion.

The company's net income rose to $610 million, or 56 cents per share, in the three months ended Oct. 30 from $336 million, or 28 cents per share, a year earlier.

Excluding items, the company earned 66 cents per share, beating analysts' average estimate of 65 cents, according to Thomson Reuters I/B/E/S.

Applied Materials has been benefiting from higher demand for 3D NAND memory chips from smartphone makers and the shift to organic light-emitting diode technology for displays.

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions