(Reuters) – Applied materials predict the income and profit of the first quarter above Wall Street's estimates on Thursday, as the chip gear manufacturer expects more clients to upgrade their equipment before 5G roll-out in prime -markets.
Raised the company's shares, which are considered to be the results of the barometer for the semiconductor industry, 4% in extended trade.
The company is trying to exploit chip manufacturers trying to upgrade their equipment while packing more computer power into smaller chips after 5G growth and data center growth.
“We are optimistic about 2020, with the expectation that there will be sustained strength in foundry, logic and memory investments during the year,” said Gary Dickerson, CEO, to call for analysts.
Sales rose from China, its main market, 5.5% to $ 1.20 billion in the fourth quarter, adding 32% to the total revenue.
Income from semiconductor systems, providing gears for chip manufacturers, increased by 2.5% to $ 2.30 billion, with estimates of $ 2.23 billion in the past about $ 2.23 billion.
The company predicted that approximately $ 4.10 billion revenue in the first quarter, plus or minus $ 150 million, would exceed analysts estimates of $ 3.71 billion, according to IBES data from Refinitiv.
It hopes that adjusted profits will range from 87 cent to 95 cent per share, above market expectations of 74 cents.
The forecast emerges in a long SA-China trade dispute of 16 months and a reduction in memory prices that began with an oversupply of DRAM and a memory flash.
Revenue dropped slightly to $ 3.75 billion in the quarter ended 27 October, but applied analysts' estimates of $ 3.68 billion, according to IBES data from Refinitiv.
Not included items, the company earned 80 cents per share, above analysts estimates of 76 cents.
Reporting by Ayanti Bera in Bengaluru; Edited by Amy Caren Daniel
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