Slides of materials applied after smoother Q3 forecasts on weaker mobile phone demand

Shares of Applied Materials Inc. fell sharply in pre-market trading on Friday after the equipment maker for semiconductor makers forecast lower-than-expected sales amid a slowdown in global smartphone demand .

Applied Materials exceeded Wall Street forecasts its second-quarter earnings late Thursday, posting a negative balance of $ 1.22 per share in three-month highs of $ 4.57 billion. However, the group based in Santa Clara, Calif., Said semiconductor revenues for the current quarter should grow 7%, less than Street's forecast, and said total sales would reach $ 4.33. one billion and $ 4.53 billion. They have been below expectations, particularly for high-end models, and in response, semiconductor and display providers have made adjustments in their capacity planning, "CEO Gary Dickerson told investors at a conference. telephone. "With the rebalancing of inventory that we are seeing from smartphones, we are going to see a sequential fall in Q3. But since our orientation towards the fourth quarter, you can see that it is recovering very well in the fourth quarter. "

marked 4.45% less in the pre-market operations, indicating an opening bell price of $ 51.56 each , a measure that would cut year-to-date gains to just 0.86%, well below the 9% advance for the Philadelphia Semiconductor benchmark.

It is also likely that the stock will be pressured by a cut in prices of Deutsche Bank and Morgan Stanley, with the previous calculation low to $ 65 from $ 70 and the last cut from $ 1 to $ 60. Keybanc, however, increased its short-term goal by $ 1 to $ 75 [19659005] Applied Material's display business, however, was a bright spot for the group during its fiscal second quarter, with sales increasing 53.5% to $ 600 million, well ahead of the $ 578 million consensus.

"On display, since 2012, heme s increased revenues at an average rate of 25% per year and in 2018, we are still on track to grow by more than 30%, "Dickerson said. "Based on recent revisions of the calendar of customers' OLED plans, our initial vision for 2019 is that our revenues will be lower than this year's, although they will continue to improve as of 2017"

"In general, we maintain a perspective positive for the business as the only long-term growth engine for Applied, "he added.


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