Applied Materials Warns of Sluggish First-Quarter Results

Applied Materials Inc., the world’s largest maker of semiconductor manufacturing equipment, warned that its fiscal first-quarter results will be below analyst forecasts, citing an inventory buildup, slow PC sales and slow economic growth. Sales are expected to be 7% to 10% below the guidance of $2.9 billion to $2.95 billion the company issued Nov. 15, Applied Materials said. The company did not provide a per-share estimate for earnings, saying only that they would not reach the target of 75 cents to 78 cents that its executives had forecast. Analysts were expecting Applied to earn 74 cents a share on average, according to First Call/Thomson Financial. Applied Materials will report first-quarter earnings Feb. 13. The company issued its warning after the markets closed. Its shares closed up $2.25 at $52.44 on Nasdaq.