Applied Materials Q4 Earnings: Revenue And EPS Beat, Strong Guidance, Shares Slide As Criminal Investigation Looms
Portfolio Pulse from Adam Eckert
Applied Materials Inc (NASDAQ:AMAT) reported Q4 revenue of $6.72 billion, beating estimates of $6.52 billion, and EPS of $2.12, surpassing the $2 estimate. Despite record revenue, earnings, and cash flow for fiscal 2023, shares fell 6.33% after hours due to a Reuters report about a U.S. criminal investigation into potential export restriction evasion to China's SMIC. The company forecasts Q1 revenue of $6.47 billion, above estimates of $5.86 billion, and adjusted EPS between $1.72 and $2.08, compared to the $1.69 estimate.
November 16, 2023 | 9:17 pm
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Applied Materials reported strong Q4 results with record fiscal 2023 performance, but faces a U.S. criminal investigation, causing shares to slide after hours.
The drop in AMAT's share price is likely due to the criminal investigation report, overshadowing the positive earnings results. Legal issues can lead to fines, restrictions, or damage to reputation, which negatively impacts investor sentiment and stock performance in the short term.
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