November 15, 2018 / 9:31 PM / in 7 months

UPDATE 1-Applied Materials' forecast misses estimates, shares drop

(Adds fourth-quarter details, forecast and share move)

Nov 15 (Reuters) - Chip gear maker Applied Materials Inc forecast current-quarter revenue and profit below Wall Street estimates on Thursday, sending its shares down 3 percent in extended trading.

The company said it expects first-quarter adjusted profit of between 75 cents and 83 cents per share, and net sales of between $3.56 billion and $3.86 billion.

Analysts on average were expecting a profit of 92 cents per share and revenue of $3.94 billion, according to IBES data from Refinitiv.

“While near-term market headwinds remain, overall industry spending remains robust,” Chief Executive Officer Gary Dickerson said in a statement.

Applied Materials, whose results are seen as a barometer for the chip industry, said sales in its semiconductor business fell about 5 percent to $2.31 billion in the fourth quarter, missing research firm FactSet’s estimates of $2.42 billion.

Sales from the company’s display business — which makes flat panel displays for televisions, PCs and smartphones — rose nearly 4 percent to $702 million, beating estimates of $690.6 million.

Excluding items, the company earned 97 cents per share, while total net sales rose 1.1 percent to $4.01 billion.

Analysts on average had expected the company to earn 97 cents per share on revenue of $4 billion, according to Refinitiv data.

Net income fell to $876 million, or 89 cents per share, in the fourth quarter ended Oct. 28, from $982 million, or 91 cents per share, a year earlier. (Reporting by Akanksha Rana in Bengaluru; Editing by Maju Samuel)

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