Applied Materials (AMAT.O) shares dip 1.4% to $335.08 premarket after agreeing to a $252 mln settlement with the U.S. Commerce Dept for illegally exporting equipment to China
The Commerce Dept said AMAT made 56 illegal shipments of chipmaking equipment valued at $126 mln to China’s top chipmaker SMIC in 2021 and 2022 without required export licenses
AMAT slated to report fiscal Q1 results after the bell on Thurs; Analysts expect rev to fall 4% yr/yr to $6.87 bln and adj EPS of $2.20, vs $2.38 a year ago, per LSEG data
Wall Street’s avg rating on AMAT is ‘buy’ among 37 analysts, with median PT of $360
Through Weds close, shares have jumped 32% YTD compared to 17% gain in Philadelphia Semiconductor index (.SOX) and 0.8% fall for the Nasdaq (.IXIC) , and are just about 1% shy of their record intraday high
Stock recently at 33 times expected earnings, vs its five-year avg forward PE of ~19, suggesting the stock may be overvalued, per LSEG Datastream (Lance Tupper is a Reuters market analyst. The views expressed are his own)

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Applied Materialsshares fell 1.4% to $335.08 premarket after a $252 million settlement with the U.S. Commerce Department for illegal exports to China. The company made 56 unauthorized shipments of chipmaking equipment to SMIC in 2021 and 2022. Analysts expect a 4% revenue decline in Q1 to $6.87 billion and adjusted EPS of $2.20. Despite a 32% YTD increase, the stock's valuation may be high at 33 times expected earnings compared to its five-year average of 19.

- Applied Materials (AMAT.O) shares fell by 1.4% to $335.08 after agreeing to a $252 million settlement for illegal equipment exports to China.  
- The U.S. Commerce Department identified 56 illegal shipments of chipmaking equipment to China's SMIC, totaling $126 million, without the necessary export licenses.  
- Analysts expect a 4% year-over-year revenue decline to $6.87 billion for AMAT's fiscal Q1 results, with a buy rating from Wall Street and shares near their record high, suggesting potential overvaluation at 33 times expected earnings.

Reuters

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BUZZ-Applied Materials shares dip after China export settlement