Applied Materials, Inc. (NASDAQ:AMAT) announced its revenue outlook for the first quarter that may match consensus forecast, as orders from chipmakers suggests signs of improvement.
The Santa Clara, California-based company reported in a statement that revenue in the quarter ending in January will drop in the range of 2 percent to 9 percent, as compared to the earlier period. The guidance indicates revenue in between $2.15 billion and $2.32 billion, versus $2.27 billion estimated by analysts.
The chip manufacturing firms alter their spending plans, as they estimate demand for everything ranging from mobile phones to televisions. The first indication of any shifts in output is exposed in orders they place with suppliers like Applied Materials. Whereas orders from contract chip have been feeble, others have been boosting their spending on memory used in smartphones.
Applied Materials also announced its financial results for the fourth quarter on Thursday. The company’s revenue for the latest quarter jumped 4.6 percent, driven by demand from companies engaged in making memory chips and handsets.
AMAT has been taking advantage from higher demand for equipment utilized for manufacturing 3D NAND chips, which can save more data and are incorporated in solid-state drives and smartphones.
New orders in the Silicon Systems Group surged roughly 8 percent in the fourth quarter. Sales in the segment jumped 4 percent.
The company reported earnings of $336 million, or 28 cents a share for the three months period ended Oct. 25, up from $256 million, or 21 cents a share one year ago. Adjusted profit was 29 cents a share, in line with the consensus forecast.
Revenue came in at $2.37 billion, representing a surge of 4.6 percent in the same period last year. Analysts surveyed by Thomson Reuters were looking for revenue of $2.40 billion.
Shares of Applied Materials rose nearly 3 percent in the pre-market session today.
