Applied Materials forecasts gloomy current quarter as supply chain woes persist
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(Reuters) -Utilized Supplies forecast third-quarter income and revenue beneath estimates, signaling that provide bottlenecks, exacerbated by the COVID-19 lockdowns in China, would hamper its capacity to fulfill demand for its chipmaking instruments.
A semiconductor and components scarcity for machines used to supply chips has been pressuring the broader chip provide chain that’s already dealing with extra demand than chipmakers are in a position to meet.
“We anticipate our capacity to satisfy this demand will stay constrained by ongoing provide chain challenges within the close to time period with incremental enhancements starting in our fourth quarter,” stated Chief Govt Officer Gary Dickerson in an earnings name on Thursday.
Utilized Supplies estimates current-quarter income of $6.25 billion, plus or minus $400 million. Analysts on common count on income of $6.73 billion, based on Refinitiv IBES information.
“There was weak point in shopper demand for merchandise like smartphones, PCs and TVs. In consequence, show gear demand has softened and we’re making changes to our income outlook,” stated Chief Monetary Officer Brice Hill.
Gross sales in its show and adjoining markets section rose 1.6% to $385 million within the quarter ended Might 1.
The corporate expects adjusted revenue to be within the vary of $1.59 to $1.95 per share within the third quarter, beneath estimates of $2.04.
For the second quarter, the corporate reported adjusted revenue per share of $1.85 and income of $6.25 billion, each of which fell in need of Wall Avenue estimates.
Shares of the Santa Clara, California-based firm fell 1.7% in prolonged buying and selling.
(Reporting by Chavi Mehta and Eva Mathews in Bengaluru; Enhancing by Amy Caren Daniel)