Applied Material slashed its fourth-quarter revenue forecast by $400 million on Wednesday (12) and warned that revenue in the first quarter of the new year might be similarly affected as U.S. concerns over China The new wave of export control measures will affect the entire semiconductor industry and hit Yingmao’s performance in China.
Yingcai’s current forecast for fiscal fourth quarter 2022 (ending October 30) revenue is regarding $6.4 billion (plus or minus $250 million), a downward revision of $400 million from the original estimate of $6.65 billion Dollar. Yingcai will announce its fourth-quarter earnings on November 17.
According to the latest forecast, Yingmai’s 4th quarter adjusted EPS may fall in the range of $1.54-1.78, down from the original forecast of $1.82-2.18 per share, according to Yingmai, inventory and remanufacturing expenses derived from the new US export control measures make the EPS lost 23 cents.
After the U.S. announced a new wave of export controls from China on Friday, several chip equipment makers have begun to adjust accordingly. ASML (ASML) (ASML-US) to inform U.S. customers that it will no longer provide services to customers in China. Although the company has not sold more advanced extreme ultraviolet (EUV) lithography equipment to China, it continues to sell deep ultraviolet (DUV) lithography equipment in China.
China is the material (AMAT-US), Intel (INTC-US) and other companies’ largest single market and an important part of the global electronics supply chain, so it is difficult to leave China easily, so export controls have caused semiconductor stocks to plummet in recent days.
Yingcai’s stock price has plunged regarding 14% since last Thursday, and investors seem to have been immune to the latest warning. It was little changed in late Wednesday trading, ending 0.38% lower at $76.01 per share, and down more than 1% in following-hours trading.
