Applied Materials Cuts 4Q Sales, Profit Guidance Due to Export Restrictions

By Will Feuer

Applied Materials Inc. cut its current-quarter sales and earnings guidance, saying that new export regulations for U.S. semiconductor technology sold in China will weigh on results.

The new regulations are expected to reduce the company's fiscal fourth-quarter sales by $400 million, plus or minus $150 million, the company said. Applied Materials expects a similar impact to quarterly sales in the fiscal first quarter, the company said.

The company said it now expects fiscal fourth-quarter sales to be about $6.4 billion, plus or minus $250 million. In August, the company guided for quarterly sales of $6.65 billion, plus or minus $400 million.

Adjusted earnings for the current quarter are expected to be in the range of $1.54 a share to $1.78 a share. The company had previously guided for adjusted earnings of $1.82 a share to $2.18 a share. The earnings guidance revision includes an estimated hit of 23 cents a share, mostly for inventory and remanufacturing charges related to the new export regulations, Applied Materials said.

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(END) Dow Jones Newswires

October 12, 2022 16:31 ET (20:31 GMT)

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