Applied Materials sinks 14% on weak guidance due to China demand

Applied materials The shares decreased by 14 % after the semiconductor equipment maker I issued weak guidance Because it faces demand pressure in China.

The company expects that the profits of the modified stock of $ 2.11, and a decline of $ 2.39 for the expected stock by LSEG. The company expected 6.7 billion dollars in revenue, for an estimate of $ 7.34 billion.

During a profit call with analysts, CEO Gary Dicrson said that the background of the current macroeconomic economy and trade issues has fueled “increased uncertainty and low clarity”, primarily in its Chinese business.

He also said that the guidance does not explain the suspended export license requests and is assumed that there is a great accumulation.

Applied materials also cited weaknesses from the main clients, and Chinese clients said that customers reduce spending after equipment manufacturing quickly in the region.

Bank of AmericaVivek Arya has reduced the shares classification to a neutral classification and reduced its target price, citing the ongoing and leading adverse sticks.

“Uncertainty can continue, making it difficult for stocks to excel despite the reasonable evaluation,” he wrote. “We doubt that the slowdown is more specific to the company.”

Despite the directive weakness, applied materials topped the third quarter profits of profits and right, as they published modified profits of $ 2.48 per share for $ 7.3 billion of revenues. The net income reached $ 1.78 billion, or $ 2.22 per share, for $ 1.71 billion, or $ 2.05 per share, a year ago.