Applied Materials’ stock climbs as company logs earnings beat, sees AI momentum

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Applied Materials Inc. delivered upbeat results and guidance Thursday afternoon, and its stock was surging in the extended session.

The chip-equipment company logged fiscal-first quarter net income of $ 2.02 billion, or $ 2.41 a share, compared with $ 1.72 billion, or $ 2.02 a share, in the year-prior quarter.

On an adjusted basis, Applied Materials AMAT, +0.79% earned $ 2.13 a share, up from $ 2.03 a share a year before, while analysts tracked by FactSet were modeling $ 1.90 a share.

Net revenue inched lower to $ 6.71 billion from $ 6.74 billion, but came in above consensus forecasts, which were for $ 6.48 billion.

The stock was up nearly 10% in after-hours action Thursday.

Read: Super Micro’s stock has surged 900% in a year. Why BofA is making a ‘buy’ call.

“Our leadership positions at key semiconductor inflections support continued outperformance as customers ramp next-generation chip technologies critical to AI and IoT [Internet of Things] over the next several years,” Chief Executive Gary Dickerson said in a release.

The company expects $ 6.1 billion to $ 6.9 billion in revenue for the ongoing quarter, with the midpoint of that forecast — $ 6.5 billion — beating out the $ 6.34 billion FactSet consensus.

Applied Materials also models $ 1.79 to $ 2.15 in adjusted earnings per share, the midpoint of which is $ 1.97. Analysts had been modeling $ 1.80.

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