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Applied Materials lowers outlook, shares slump

SAN FRANCISCO (MarketWatch) -- Applied Materials Inc. lowered its outlook for the current fiscal year on Tuesday morning, citing "weaker than expected near-term demand" in its semiconductor manufacturing equipment business. In a statement, Applied Materials said lower demand could have a 15-20 cents-per-share impact on its non-GAAP earnings for the fiscal year ending Oct. 28. Net sales are expected to come in below its previous outlook of $9.1 billion to $9.5 billion for the year. The company added that results for the current quarter -- ending July 29 -- are expected to remain within its previously issued outlook range. More specific guidance will be given in its next earnings call on Aug. 15. Shares of Applied Materials were down more than 5% in pre-market trading on Tuesday morning.