Applied Materials Shares Tumble After 2Q

Analysts polled by Thomson Reuters were looking for a loss of 7 cents per share on sales of $931.2 million.

Several analyst pointed to the solar business as a point of particular concern.

Stifel Nicolaus analyst Patrick Ho told clients in a note Wednesday, "We believe we are now seeing the 'other shoe drop'" for the solar unit.

"While weakness began exhibiting itself in the previous quarter, we believe that conditions have worsened more than we initially thought and this could linger for the near term, until the financing market improves," he said.

Ho nevertheless reiterated a "Buy" rating on shares, saying he remains "favorably disposed to the company's long term prospects," including the solar business.

Mehdi Hosseini, an analyst with FBR Capital Markets, said solar customers have not yet responded to falling prices, leading to weak demand for Applied Materials and others.

He said he expects several more quarters of the same, reiterating a "Market Perform" rating.

The company's shares tumbled 62 cents, or 5.5 percent, to $10.85 in morning trading.