06:26 AM EDT, 05/17/2024 (MT Newswires) -- Applied Materials ( AMAT ) late Thursday issued a fiscal third-quarter outlook in line with Wall Street's estimates at the midpoint after the semiconductor equipment manufacturer recorded better-than-expected results in the preceding three-month period.

Adjusted earnings are set to come in between $1.83 and $2.19 per share for the current quarter, while revenue is pegged at roughly $6.65 billion, plus or minus $400 million. The midpoint of $2.01 for adjusted EPS and $6.65 billion in revenue matches the current consensus on Capital IQ for both metrics.

Within the revenue guidance, the company anticipates semiconductor systems revenue of around $4.8 billion, roughly $1.57 billion of applied global services sales and display revenue of about $245 million, Chief Financial Officer Brice Hill said on an earnings call late Thursday. The stock edged down 1% in Friday's premarket activity.

For the quarter ended April 28, adjusted EPS increased 5% to $2.09, topping the Street's view of $1.99. Revenue nudged higher to $6.65 billion from $6.63 billion last year, ahead of analysts' $6.53 billion estimate.

"With second-quarter revenue and earnings toward the high end of our guided range, Applied Materials ( AMAT ) continued to deliver strong performance in 2024, and we're in a great position to benefit from secular growth trends over the longer term," Chief Executive Gary Dickerson said on the call. "These trends are driving demand for more chip manufacturing capacity as well as better chips with higher performance and improved energy efficiency."

Sales in the semiconductor systems segment decreased to $4.9 billion from $4.98 billion, while applied global services rose to $1.53 billion from $1.43 billion. Display and adjacent markets revenue grew to $179 million from $168 million in the 2023 quarter, according to the company.

The adjusted gross margin came in at 47.5% versus 46.8% in the prior-year period. Operating expenses widened to $1.24 billion from $1.18 billion on a yearly basis.

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