Applied Materials shares sink 10% on light forecast amid macroeconomic uncertainties

Core Insights - Applied Materials shares fell over 10% in extended trading due to a weaker-than-expected outlook for the current quarter [1] - The company anticipates adjusted earnings of $2.11 per share and revenue of $6.7 billion, both below LSEG estimates of $2.39 per share and $7.34 billion respectively [1] Financial Performance - In the third quarter, Applied Materials reported a net income of $1.78 billion, or $2.22 per diluted share, compared to $1.71 billion or $2.05 in the same period last year [3] - The semiconductor systems division achieved $5.43 billion in sales, exceeding estimates and reflecting a 10% increase year-over-year [4] - The adjusted EPS was reported at $2.48, surpassing the estimated $2.36, while revenue was $7.3 billion against an estimate of $7.22 billion [5] Market Conditions - CEO Gary Dickerson highlighted that the current macroeconomic and policy environment is leading to increased uncertainty and lower visibility, particularly affecting the company's business in China [2] - The finance chief indicated a revenue decline in the fourth quarter due to capacity digestion in China and non-linear demand from leading-edge customers [3]