Applied Materials: profits exceed expectations – 05/19/2023 at 14:52


(AOF) – The supplier for the semiconductor sector Applied Materials has unveiled results above expectations. In the second quarter, which ended at the end of April, the group recorded a 3% increase in its net profit to 1.575 billion dollars, or 1.86 dollars per share. Earnings per share excluding exceptional items came in at $2, or 17 cents better than consensus. Revenue rose 6% to $6.63 billion, while the market was expecting $6.375 billion.

In the current quarter, the group is targeting adjusted earnings per share between $1.56 and $1.92 for revenues of $6.15 billion on average. Wall Street anticipates respectively 1.63 dollars and 5.97 billion dollars.

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Growing market and price pressures

According to the SIA, global chip sales were $151.7 billion in the first quarter of 2022, up 23% year-on-year. Sales increased in all major regional markets and for all product categories. As global uncertainties, including the war in Ukraine and the health crisis, weigh on supply chains, demand for semiconductors continues to significantly outpace supply. Manufacturers Samsung and TSMC have announced that they will raise their prices, in a context where players in the sector have good leeway and benefit from increased bargaining power. However, wage increases and component prices could weigh on future performance.

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German autonomy not so simple

China has been Germany’s leading economic partner for six years. However, across the Rhine, companies are called upon to reduce their heavy dependence on the Asian giant due to a rise in geopolitical tensions with the country. In this context, the powerful VDMA points out the importance of the Chinese market and the danger that a too sudden termination of ties with China would represent. The country is, in fact, the second export market and the first investment destination for German mechanical and industrial engineering. The federation nevertheless recognizes the need to diversify the trading partners of the German economy.



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