Weak Foundry Spending Impacts Applied’s FQ3 Earnings, Though Major Inflections Will Drive Growth

Applied Materials reported its Q3 2015 earnings on August 13th. While the company continues to grow its topline, a weaker-than-expected growth rate, unpredictable near-term demand for nanomanufacturing equipment, and the lumpy Display segment have all weakened investor sentiment around the company. Applied reported a relatively decent Q3 2015, despite near-term headwinds. While the company’s non-GAAP earnings per share of $0.33 was inline with analyst expectations (as per Thomson Reuters), its revenue of $2.49 billion fell marginally short of expectations.

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