Applied Materials Widens Profit By 39% On Strong Display Sales

Shares of Applied Materials Inc. increased 3% in after-hours trade on Thursday after the company edged just ahead of third-quarter revenue expectations and grew its profit year-over-year by 39%. The semiconductor equipment and services company reported net income of $364 million, or 29 cents a share, compared with a year-earlier profit of $262 million, or 21 cents. Analysts had been expecting earnings per share of 31 cents. Revenue for the three-month period was up 4% to $2.44 billion from $2.35 billion last year, just ahead of the $2.40 billion analysts had been expecting. Applied Materials attributed the revenue growth to improvements in its services and display businesses, up 7% and 12%, respectively. Its outlook, however, was shy of expectations. The company forecast non-GAAP earnings between 31 cents and 35 cents a share, which is below the 39 cents analysts were forecasting on average on FactSet.