Applied Materials Inc. (NASDAQ:AMAT) stock is plunging on Friday after the company reported financial results for the third quarter after market close on Thursday.

The chip equipment manufacturer reported third-quarter revenue of $7.3 billion, beating analyst estimates of $7.22 billion, with adjusted earnings of $2.48 per share, beating analyst estimates of $2.36 per share.

Outlook

“We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing,” said Brice Hill, senior vice president and CFO of Applied Materials.

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“We are navigating and adapting to the near-term uncertainties by leveraging our robust supply …

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