Applied Materials Inc. gave a bullish revenue forecast for the current period on increasing orders for equipment used by makers of computer chips.

The Santa Clara, California-based company is the largest maker of equipment used to produce semiconductors, the most important components of electronic devices. Its customers include Samsung Electronics Co., Taiwan Semiconductor Manufacturing Co. and Intel Corp.

Investors track demand for Applied Materials as a future indicator for products ranging from personal electronics to data center servers. Chipmakers order machinery a year ahead of their anticipated need.

Key Insights

• Revenue in the fiscal first quarter will be about US$4.95 billion, the company said Thursday in a statement. Analysts, on average, estimated US$4.52 billion, according to data compiled by Bloomberg.
• Profit, on an adjusted basis, will be US$1.20 to US$1.32 per share in the three-month period ending in January, Applied Materials said. That compares with an average estimate of US$1.11.
• Fiscal fourth-quarter net income rose to US$1.13 billion, or US$1.23 a share, from $698 million, or 75 cents, from the period a year earlier, the company said. Revenue gained 25 per cent to US$4.69 billion in the period ended Oct 25. Analysts were looking for $4.6 billion.
• Adjusted profit was US$1.25 a share in the quarter compared with analysts’ average estimate of US$1.17.

Executive Comments

• “Our future opportunities have never looked better and, as powerful technology trends take shape, we are uniquely positioned to accelerate our customers’ road maps and outperform our markets,” Chief Executive Officer Gary Dickerson said in the statement.

Stock Reaction

• Shares gained about 3 per cent in extended trading after the results were released. The stock closed at US$69.80 in New York, leaving it up 14 per cent this year.