Applied Materials, Inc. (NASDAQ:AMAT) shares are trading lower Friday as the stock faces pressure following a report suggesting the company is facing a U.S. criminal investigation for possibly evading export restrictions on China’s SMIC.
The Details:
The company’s better-than-expected fourth-quarter financials are being overshadowed by a Reuters report released Thursday stating that Applied Materials is under a U.S. Dept. of Justice criminal probe for sending equipment to Chinese chip-maker SMIC without proper export licenses. According to the report, equipment worth hundreds of millions of dollars is involved in the criminal investigation.
Applied Materials reported its fourth-quarter financial results on Thursday with earnings of $2.12 per share, beating analyst estimates of $2 per share and quarterly revenue of $6.72 billion, which beat the consensus estimate of $6.52 billion.
AMAT shares are dropping on heavy trading volume as investors digest the latest developments. According to data from Benzinga Pro, more than 12.25 million shares have been traded in the session, compared to the stock’s 100-day average of 5.609 million shares.
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AMAT Price Action: According to Benzinga Pro, Applied Materials shares are down 5% at $147.09 at the time of publication.
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