Applied Materials, Inc.(NASDAQ:AMAT) reported third quarter net income that fell more than half from a year earlier, much below analysts’ forecasts while its outlook was also not up to market expectations.
Shares in the company fell 45 cents, or 3.81 percent, to $11.35 in pre-marker trading after the disappointing results came in.
The company attributed its poor showing to the general economic slowdown and a decline in demand for chip-making equipment.
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For the three months to July the company's net income fell to $218 million, or 17 cents per share, from $476 million, or 36 cents per share, a year ago.
Excluding charges incurred due to restructuring, acquisitions and other items, adjusted earnings came to 24 cents per share.
Revenue fell 16 percent to $2.34 billion.
Analysts had estimated adjusted earnings of 22 cents per share on revenue of $2.43 billion.
For the current quarter Applied Materials expects adjusted earnings to be break-even to 6 cents per share. Analysts estimated 12 cents per share.
The company also expects net sales to drop 25 to 40 percent from last quarter, which suggests revenue of $1.40 billion to $1.76 billion. Analysts were looking for $1.94 billion.
If chips ancillary makers are feeling the heat, producers of pet products are thriving. PetSmart, Inc.(NASDAQ:PETM) net income for its second quarter rose 28 percent with all round growth in all its segments.
The company's results were better than expected and its shares rose nearly 6.20 percent to $71.60 in pre-market trading, after closing a $67.44 on Wednesday.
In the quarter ended July 29, PetSmart's net income rose to $78.5 million, or 71 cents per share, from $61.2 million, or 54 cents per share. Revenue increased 9 percent to $1.62 billion from $1.49 billion.
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Analysts expected income of 65 cents per share and revenue of $1.6 billion.
PetSmart has forecast net income of $3.30 to $3.40 per share in 2012, and expects revenue to grow 10 to 11 percent, which suggests a total of $6.72 billion to $6.79 billion.
Analysts are estimating income of $3.30 per share and $6.71 billion in revenue, on average.