Applied Materials forecasts third-quarter sales above estimates

REUTERS: Applied Materials Inc forecast third-quarter sales above analysts' estimates on Thursday, betting on sustained demand for its semiconductor manufacturing tools against the backdrop of a global chip shortage and efforts in several countries to subsidize chip factories.

The company's shares rose 1.5per cent in extended trading.

Applied Materials got a boost from a pick up in demand for laptops, PCs and gaming consoles across the world during the pandemic, as people began to lean more on technologies for virtual interaction.

The company expects current-quarter net sales of US$5.92 billion, plus or minus US$200 million, compared with estimates of US$5.54 billion, according to IBES data from Refinitiv.

Quarterly net sales rose to US$5.58 billion from US$3.96 billion, compared with estimates of US$5.41 billion.

Net income rose to US$1.33 billion, or US$1.43 per share, in the quarter, compared with US$755 million, or 82 cents per share, a year earlier.

(Reporting by Tiyashi Datta in Bengaluru; Editing by Shounak Dasgupta)