Applied Materials falls as strong outlook fails to impress investors
BUZZ-Applied Materials falls as strong outlook fails to impress investors ** Shares of chip equipment maker Applied Materials AMAT.O fall 5% to $507.8 in premarket trading
** Despite a Q3 revenue beat on robust demand for its semiconductor manufacturing equipment, shares fell on lofty investor expectations from the company
** "AMAT’s earnings were good, but not great -- and in an earnings season where we have seen several standout SPE (semiconductor production equipment) prints, that distinction matters," analysts at Morgan Stanley say
** Q3 revenue of $9.12 bln beat analysts' estimate of $8.99 bln -- data compiled by LSEG
** Co forecasts Q4 revenue of around $10.25 bln ± $500 mln, compared with analysts' estimate of $9.54 bln
** 34 of 39 brokerages rate the stock "buy" or higher and five "hold"; their median PT is $650 - data compiled by LSEG
** As of last close, stock more than doubled YTD
(Reporting by Kanchana Chakravarty in Bengaluru)
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