Chipmaker Applied Materials (NASDAQ:AMAT) reported on Thursday second-quarter earnings and revenue that fell short of expectations as the slowdown in global smartphone shipments weighed on chip demand.
Shares rose 2% postmarket.
Applied Materials announced earnings per share of $0.89 on revenue of $3.96 billion. Analysts polled by anticipated EPS of $0.94 on revenue of $4.12 billion. That compared with an EPS of $0.70 on revenue of $3.54 billion in the same period a year before. Applied Materials had reported EPS of $0.98 on revenue of $4.16 billion in the previous quarter.
Analysts are expecting EPS of $0.94 and revenue of $4.13 billion in the upcoming quarter.
The miss on the bottom line comes even as gross margin inched up to 44.6% from 43.5% a year earlier.
The company said orders from foundries were 56% of all orders, DRAM was 22%, and flash memory chip tools were 22%, compared with 38%, 18% and 24% a year earleir.
Looking ahead, the company touted cautious optimism, saying its supply chain is recovering, with underlying demand for its semiconductor equipment and services remaining robust.
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