Applied materials have been bounded since 2020 on Chinese misfortunes

(Bloomberg) – Applied Materials Inc. has undergone the worst decrease in a day in five years after giving disappointing sales and sales and profits, renewing the worries that the American commercial dispute with China weighs on demand.

Most of Bloomberg

Revenues will be around $ 6.7 billion in the fourth tax quarter, the company announced on Thursday in a statement. Analysts had estimated $ 7.32 billion on average. The profit will be around $ 2.11 per share, excluding certain elements, compared to a projection of $ 2.38.

Applied Materials, the largest American producer of theater manufacturing equipment, notes less customer requests in China, said chief executive Gary Dickerson in an interview. He also faces delays in approval for exporting technology to this country, he said. In addition, large customers report certain purchases in the face of prolonged negotiations on prices and other economic problems.

“It just creates a level of uncertainty,” said Dickerson.

The prospects sent actions of materials applied down 14% on Friday, the most since the first days of the pandemic in March 2020. They had increased by 16% this year before the report.

In the third quarter, which ended on July 27, income increased by 7.7% to $ 7.3 billion. Analysts had anticipated $ 7.21 billion on average, according to data compiled by Bloomberg. The profit was $ 2.48 per share, against an estimate of $ 2.36.

The ranks of clients of applied materials include some of the biggest names in the flea industry, such as Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and Intel Corp. These manufacturers order equipment well in advance on the start of production, making forecasts of applied materials a barometer for future demand.

The company said last week that it would participate in an Apple Inc. plan to stimulate manufacturing in the United States by spending more than $ 200 million for an installation in Arizona. Applied materials will also sell equipment to American factories in Texas Instruments Inc. to support Apple products.

“The applied decision of materials” to be a basic member of the “American Manufacturing Program” of Apple, a desire to increase factory production in the United States, could strengthen its position as a supplier key of flea mastery for advanced semiconductors used in iphones, “said Masahiro Wakasugi, Bloomberg Intelligence, in a note.