Applied Materials shares down on guidance miss, uncertainty around 2025

nvesting.com -- Applied Materials (NASDAQ:AMAT) reported fiscal fourth-quarter results that beat Wall Street estimates, but the memory chip maker's revenue guidance for the current quarter fell short of estimates.

Applied Materials Inc (NASDAQ:AMAT ) fell more than 6% in premarket trade Friday. 

Applied Materials announced adjusted Q4 earnings per share of $2.32 on revenue of $7.05B. Analysts polled by Investing.com anticipated EPS of $2.19 on revenue of $6.96B.

Looking ahead to Q1, the company forecast adjusted diluted EPS of $2.29, give or take $0.18, on revenue of about $7.15B, plus or minus $400M. That compared with estimates for adjusted EPS of $2.27 on revenue of $7.23B.

Commenting on the report, Barclays (LON:BARC ) analysts said the small guidance miss would typically be overlooked. However, after AMAT peers Lam Research (NASDAQ:LRCX ) and KLA Corp talked more optimistically about 2025, "investors are seemingly more skeptical," analysts said.

"We understand the company never gives solid yearly guidance but there may have been some expectation of a more descriptive outlook," they added. 

Analysts at Morgan Stanley (NYSE:MS ) also voiced a cautious tone. While Applied continues to post solid numbers and its slightly below-consensus guidance remains "at the noise level," Morgan Stanley highlights "growing uncertainty around export controls, and trailing edge remaining strong even as trailing edge customers struggle remains a risk."

Yasin Ebrahim contributed to the report. 

Source: Investing.com