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Applied Materials misses earnings estimates, Ross Stores cuts full-year earnings forecast

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Yahoo Finance's Jared Blikre breaks down earnings results for Applied Materials and Ross Stores.

Video Transcript

DAVE BRIGGS: We're going to go over to Jared with Applied Materials just out with earnings. Jared, what are we seeing?

JARED BLIKRE: It's a miss on both the top and bottom lines here. And let's go over to second quarter results. Adjusted EPS coming in a bit light, $1.85 versus the estimate, $0.06 higher by the Street at $1.91. Net sales also a miss, $6.25 billion versus estimate of $6.36 billion. And then adjusted gross margin, that came in just a tad light at 47% versus the 47.1% that the Street was expecting. And now the third quarter forecast, they're seeing adjusted EPS, $1.59 to $1.95, and the estimate was for $2.05. So another double miss right there, a triple if you think about it.

Also want to move on to Ross Stores. That stock is down about 15%. You can see it on your screen right there. It is also a miss on the top and bottom lines for them. Let's see, first quarter results, EPS of $0.97 versus the estimate of $1. Sales of $4.33 billion versus the estimate of $4.54 billion. Total location count, that's 1,951, a little bit light of the estimate of 1,953.

And then merchandise inventories, 2.67 billion when the estimate was 1.71 billion. So, again, we're seeing those inventories rise. We saw that with Walmart and also Target. Operating margin, 10.8%. That came in line with the expectations. And then, finally, the 2023 year forecast, they're seeing EPS at $4.34 to $4.58, and the estimate was for $5.04. So a couple of double misses here on the earnings front.