Applied Materials, Inc. (NASDAQ:AMAT), which makes machines used to manufacture chips and other high-tech components, stock fell 3.66% (As on Nov 19, 11:22:38 AM UTC-4, Source: Google Finance) after the company forecast first-quarter sales below market estimates, as the pandemic disrupts supply chains and keeps the company from meeting client orders. The company expects supply chain headwinds to fiscal 2022. Chipmakers are ramping up output and buying new tools as the world shifts to 5G and consumers upgrade their phones, laptops and gaming consoles. The broader shift to remote work and learning during the pandemic has also powered demand for chips. On a non-GAAP adjusted basis, the company reported gross margin of 48.2 percent, operating income of $2.03 billion or 33.1 percent of net sales, and EPS of $1.94. The company generated $1.15 billion in cash from operations and returned $1.72 billion to shareholders including $1.50 billion in share repurchases and $216 million in dividends. Looking ahead, the company currently expects the orders to be higher in the first half of fiscal 2022 than in the second half of 2021 across Semi Systems, AGS and also Display.

Moreover, in fiscal 2021, we grew semiconductor equipment revenues almost $5B, or 43% year-on-year, outpacing the market growth rate during that period. The company has grown the backlog to $11.8B which is up 77% compared to the same period last year. In fact, Semi Systems orders grew in every quarter. In Q4, they were up 136% year-over-year. The epi and thermal businesses both grew 70% this fiscal year, and CMP grew more than 60% and in the targeted growth areas, the company expects the Process Diagnostics and Control revenues to be up more than 60% in calendar 2021.

AMAT in the fourth quarter of FY 21 has reported the adjusted earnings per share of $1.94, which is inline with the analysts’ estimates for the adjusted earnings per share of $1.94, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 31 percent to $6.12 billion in the fourth quarter of FY 21, missing the analysts’ estimates for revenue of $6.33 billion.

For the current quarter ending in February, Applied Materials expects its per-share earnings to range from $1.78 to $1.92. Analysts surveyed by Zacks had forecast adjusted earnings per share of $1.96. The company said it expects revenue in the range of $5.91 billion to $6.41 billion for the fiscal first quarter. Analysts surveyed by Zacks had expected revenue of $6.43 billion.