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Applied Materials’ Forecast Misses Estimates on Supply-Chain Woes

  • Profit and sales outlook both come in short of estimates
  • ‘Our supply chain cannot keep up,’ Applied Materials CEO says
   
Photographer: David Paul Morris/Bloomberg
Updated on

Applied Materials Inc., the biggest maker of machinery used to manufacture semiconductors, slumped in late trading after supply-chain constraints forced it to give a downbeat forecast. 

The company expects sales of roughly $6.16 billion in the fiscal first quarter, which runs through January. Analysts estimated $6.45 billion on average, according to data compiled by Bloomberg. Profit will be $1.78 to $1.92 a share in the period, excluding some items, compared with an average prediction of $1.97.