Applied Materials slashes outlook
SAN FRANCISCO (MarketWatch) -- Shares of
Applied (AMAT) shares lost 2.7% to close at $10.71 after the Santa Clara, Calif.-based semiconductor capital equipment company said it expects revenue for the year ending in October to fall below its stated outlook of $9.1 billion to $9.5 billion.
Applied also expects adjusted earnings to fall short of its previous range of 85 cents to 95 cents a share. The company said it estimates that the "demand changes" could have an impact of 15 cents to 20 cents a share on the company's full-year adjusted earnings-per-share results.
Applied pointed to "weaker than expected near-term demand in its semiconductor equipment business, primarily among foundry customers."
The company said it will provide a new target range during its next earnings call on Aug. 15. Applied did say that it expects its fiscal third-quarter results for the period ending July 29 to be within its earlier forecast.
Applied's announcement follows
Shares of AMD ended 11% lower.