The stock of Applied Materials (AMAT) is up 13% after the microchip equipment maker reported strong earnings that beat Wall Street forecasts.
The company reported earnings per share (EPS) of $2.13 U.S., which beat a consensus estimate among analysts of $1.90 U.S.
Revenue for the final quarter of last year came in at $6.71 billion U.S., which beat expectations of $6.48 billion U.S.
Applied Materials makes the products and equipment that are needed to manufacture microchips and semiconductors. Its clients include Intel (INTC) and Taiwan Semiconductor Manufacturing Co. (TSM).
In terms of guidance, Applied Materials forecast a range of potential revenue for the current quarter, with a midpoint of $6.50 billion, U.S.
The revenue guidance was ahead of Wall Street views that called for $6.34 billion U.S.
On an earnings call, company executives said that their chip equipment business will grow faster than the semiconductor unit because of demand for advanced chips that power artificial intelligence (A.I.) applications.
Before today (Feb. 16), the stock of Applied Materials had gained 63% over the last 12 months and was trading at $187.66 U.S. per share.
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