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Utilized Supplies reported better-than-expected earnings for its fiscal first quarter, sending the inventory greater in after-hours buying and selling.

The chip gear maker reported adjusted earnings of $2.03 a share for the January quarter, in contrast with the consensus estimate of $1.93 amongst Wall Avenue analysts tracked by

FactSet
.
Income got here in at $6.74 billion, barely above analysts’ expectations of $6.7 billion.

Utilized Supplies

(ticker:

AMAT

) additionally forecast a spread of potential income for the present quarter with a midpoint of $6.4 billion, in contrast with the consensus view of $6.3 billion.

Utilized Supplies shares rose 1.3% to $116.90 following the discharge in publish market buying and selling. The corporate’s key prospects embody

Intel

(

INTC

) and

Taiwan Semiconductor Manufacturing

(TSM).

On the convention name, the corporate’s managers mentioned they anticipate their order backlog to say no amid the blended macro setting. They’ve seen order cancellations from reminiscence chip prospects and don’t imagine that space of the enterprise is bettering but. Utilized Supplies additionally mentioned it’s seeing weak point within the shopper markets—together with private computer systems and smartphones. Nevertheless, its long run outlook for the semiconductor business stays “extremely constructive” on the again of the rising complexity of chips.

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Over the previous 12 months, Utilized Supplies inventory has fallen 18%, in contrast with the 14% drop for the

iShares Semiconductor

(SOXX) exchange-traded fund, which tracks the efficiency of the ICE Semiconductor Index.

Write to Tae Kim at tae.kim@barrons.com