The applied materials sink 13% of the weak guidelines due to China’s demand

Applied materials Shares were submerged over 13% after the semiconductor equipment manufacturer poor guidelines as he faces the search for pressure in China.

The company’s forecast adjusts the profit per share of $ 2.11, reaching $ 2.39 per share expected by LSEG. The company projected $ 6.7 billion in revenue to estimate $ 7.34 billion.

During a call to profit with analysts, CEO Gary Dickerson said the current macroeconomic background and commercial problems have nourished “increasing uncertainty and less visibility”, mainly within its business in China.

He also said that the management did not take into account hanging applications for an export license and assumes a significant lag.

The materials applied also cited weakness from leading customers and said that China’s customers were facilitating costs after quickly increasing the production of equipment in the region.

Bank of America‘S Vivek Arya has lowered the shares to a neutral rating and lowered its price target, citing current China and leading front winds.

“Uncertainty can continue, which makes the action more difficult to surpass, despite a reasonable assessment,” he writes. “We suspect that the delay is more specific to the company.”

Despite the weak guidelines, the applied materials exceeded the profits and estimates of the third quarter revenue, the publication of a corrected profit of $ 2.48 per share at $ 7.3 billion in revenue. The net income reached $ 1.78 billion, or $ 2.22 per share, for $ 1.71 billion, or $ 2.05 per share a year ago.