Applied Materials’ stock is falling despite earnings, sales beats

Applied Materials Inc.’s
AMAT,
-0.36%
stock dropped 6% in extended trading Thursday after the company reported quarterly results that topped analyst revenue and earnings estimates. Applied reported fiscal fourth-quarter net income of $2 billion, or $2.38 a share, compared with net income of $1.6 billion, or $1.85 a share, in the year-ago quarter. Adjusted earnings were $2.12 a share. Net sales were $6.72 billion, down from $6.75 billion a year ago. Analysts surveyed by FactSet had expected on average net earnings of $1.99 a share on revenue of $6.52 billion. Shares of Applied have soared 59% this year, while the broader S&P 500 index
SPX,
+0.12%
has increased 17%.