Applied Materials (NASDAQ: AMAT) on Thursday reported a 23% decline in second-quarter revenue to $3.54 billion. Meanwhile, non-GAAP net income for the quarter fell 41% year-over-year to 70 cents per share.
The Q2 results came within the projection set by the management and above the estimates set by Wall Street analysts.
Gary Dickerson, President and CEO, said “Looking ahead, we maintain a positive view of our markets as powerful new demand drivers for semiconductors and displays take shape, creating tremendous opportunities for Applied Materials.”
During the quarter, sales declined in the Semiconductor Systems segment, as well as the Display and Adjacent Markets unit, while it slightly improved in the Applied Global Services division.
AMAT shares gained over 4% during pre-market trading on Thursday. The stock has increased by 28% in the year-to-date period.
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In the third quarter of fiscal 2019, Applied expects net sales to be approximately $3.525 billion, plus or minus $150 million. Non-GAAP EPS is expected to be in the range of $0.67 to $0.75.
The semiconductor industry has been facing multiple headwinds due to lower demand and surplus inventories. In order to clear the inventories, chip makers have been cutting their investments, which is hurting Applied Materials.
Last quarter, the company’s management told analysts that inventory levels would come down in late 2019.