Applied Materials' Net Surges

The company beats both revenue and earnings estimates.
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Updated from 4:32 p.m. EDT

Applied Materials

(AMAT) - Get Report

reported surging second-quarter sales and earnings on Tuesday, topping Wall Street's expectations.

The chip-equipment maker expects the good times to continue in its third quarter, projecting better-than-expected results for the period.

Instead of cheering, investors sold on the news. In recent after-hours trading, shares of Applied were off 36 cents, or about 2%, to $17.49.

In the quarter ended April 30, the company earned $412.8 million, or 26 cents a share, on sales of $2.25 billion. Those results were up from the year-ago period, when the company earned $304.8 million, or 18 cents a share, on $1.86 billion in sales.

Analysts polled by Thomson First Call were expecting the company to earn 23 cents a share on sales of $2.14 billion in the quarter. Applied

predicted in February that it would earn 22 cents to 23 cents a share in the period on sales ranging from $2.1 billion to $2.14 billion.

For the third quarter, Applied expects to earn 28 cents to 30 cents a share on sales ranging from $2.36 billion to $2.47 billion. The Street had forecast earnings of 27 cents a share on $2.33 billion in sales in the current period.

In the same period

last year, the company earned $369.6 million, or 23 cents a share, on sales of $1.63 billion.

The longer-term outlook appears bullish, with Applied recording $2.49 billion in new orders in the second quarter -- up 22% from the first quarter and 60% from the year-ago period. The company expects orders to rise 5% to 10% sequentially in its third quarter.

Applied's stock closed the regular session up 15 cents, or about 1%, to $17.85.