(Bloomberg) — Applied Materials Inc., the biggest maker of machinery used to manufacture semiconductors, climbed in late trading after topping earnings estimates last quarter despite supply challenges.
First-quarter profit rose to $1.89 a share in the period, excluding some items, the company said Wednesday. That compared with an average estimate of $1.85. Sales climbed 21% to $6.27 billion, also ahead of estimates.
The shares gained as much as 4.3% to $146.99 in extended trading after the results were released. The stock had lost 10% this year through the close, part of a broader slide by semiconductor-industry shares.
The chip industry is desperate for more of Applied Materials’ equipment to cope with booming demand for electronics. But semiconductor-making machinery is complex and requires its own chips to control vital functions. That’s made it hard for the company to produce enough gear to fill its orders.
The supply woes will persist in the current quarter. The company expects sales of about $6.35 billion in the fiscal second quarter, which ends in April. Analysts were projecting $6.43 billion on average, according to data compiled by Bloomberg. Profit will be $1.75 to $2.05 a share, minus certain items. That compares with an average prediction of $1.96.
Applied Materials’ customers include Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co. and Intel Corp., making its projections a window into the spending plans and confidence levels of some of the biggest companies in technology.
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