Applied Materials (NASDAQ:AMAT) delivered better-than-expected results for its fiscal fourth quarter, surpassing Wall Street estimates for both earnings and revenue. However, its revenue guidance for the upcoming quarter fell short of expectations, causing shares to drop over 7% in pre-market today.

For the fourth quarter, the company reported adjusted earnings per share of $2.32, exceeding the anticipated $2.19. Revenue came in at $7.05 billion, slightly above the forecasted $6.96 billion, reflecting strong performance despite industry challenges.

Looking ahead to the first quarter, Applied Materials projected adjusted diluted earnings per share of $2.29, plus or minus $0.18, with revenue of approximately $7.15 billion, plus or minus $400 million. While the EPS guidance met expectations of $2.27, the revenue outlook fell short of the $7.23 billion consensus.