Semiconductor equipment maker Applied Materials Inc. (NASDAQ: AMAT) today offered lower full-year EPS and revenue forecasts than analysts had been expecting, at the same time that the company’s CEO projected the total market for wafer-making equipment would exceed $30 billion again in 2012. The company’s CFO gave the bad news:
Applied expects continued strength in our core semiconductor business to result in fiscal year 2012 revenue for the company in the range of $9.1 to $9.5 billion. We expect non-GAAP earnings per share of $0.85 to $0.95, including $0.07 to $0.08 of operating losses from our Energy and Environmental Solutions group.
The consensus estimate for full-year EPS had been $0.96, while the revenue estimate called for $9.61 billion. Those operating losses are due to a downturn in demand for new equipment at solar makers:
As a result of the sharp capacity-driven downturn in our solar and display equipment markets, these businesses are focused on reducing costs to improve profitability.
Applied’s shares are down about -2% at $12.56 in a 52-week range of $9.70-$15.97.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
