Why Applied Materials Stock Pulled Back on Friday

Shares of semiconductor company Applied Materials (NASDAQ: AMAT) pulled back on Friday after the company reported financial results for its fiscal first quarter of 2025. As of 2:15 p.m. ET, Applied Materials stock was down 6% and is now down more than 30% from its high.

Applied Materials' equipment enables semiconductor manufacturing. And in Q1, the company's revenue of $7.17 billion hit management's guidance square on the nose. Moreover, its Q1 adjusted earnings per share (EPS) were ahead of guidance, growing 12% year over year to $2.38. So there weren't really any problems in the Q1 numbers.

For the upcoming second quarter, Applied Materials expects revenue of $7.1 billion. While that would be up on a year-over-year basis, investors had hoped for more. There isn't a demand problem but rather an export problem. New trade restrictions represent a $400 million headwind for fiscal 2025, with half of this coming in the second quarter, according to management.

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Source Fool.com