Applied Materials Lowers Q4 Outlook Due To New Export Regulations

(RTTNews) - Semiconductor manufacturing equipment maker Applied Materials, Inc. (AMAT) on Wednesday lowered its outlook for the fourth quarter, reflecting new export regulations to China.

Under the new U.S. export regulations, U.S. companies must cease supplying Chinese chipmakers with equipment that can produce relatively advanced chips unless they first obtain a license. Applied currently estimates that the new regulations will reduce its fourth-quarter net sales by approximately $400 million, plus or minus $150 million.

Applied Materials now expects fourth-quarter net sales to be about $6.4 billion, plus or minus $250 million, compared with prior outlook of $6.65 billion, plus or minus $400 million.

The company also expects the new regulations to impact net sales in the first quarter of fiscal 2023 similar to the current quarter.

Applied now expects fourth-quarter adjusted earnings per share of $1.54 to $1.78, which compares to the prior range of $1.82 to $2.18 per share.

Analysts polled by Thomson Reuters currently estimate earnings of $2.01 per share and revenues of $6.67 billion for the quarter. Analysts' estimates typically exclude one-time items.