What Chip Industry Slowdown? Applied Materials Expects Record Sales Again Next Quarter
Applied Materials (NASDAQ: AMAT) stock put in a solid rally ahead of quarterly earnings, and the report card didn't disappoint. Despite chip industry headwinds, the company hauled in record sales during its fiscal 2022 third quarter (the three months ended July 31) and expects another quarterly sales record in Q4.
While share prices remain depressed (down 33.5% in 2022), this chip industry leader looks like a top buy right now. Here's why.
Applied Materials reported earnings near the top of guidance provided a few months ago. Revenue was a new quarterly record of $6.52 billion, up 5% year over year. Adjusted earnings per share were $1.92, up 2% year over year. Those are pedestrian growth rates but bear in mind that the chip fab equipment industry is dealing with severe supply chain constraints. For the last several quarters, demand has been higher than equipment makers can supply. Some of Applied Materials' peers have reported declines in sales because of these issues.
Source Fool.com
