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Applied Materials shares plunged more than 13% after the semiconductor equipment maker issued weak guidance as it faces demand pressures in China.

The company forecast adjusted earnings per share of $2.11, falling short of the $2.39 per share expected by LSEG. The company projected $6.7 billion in revenue, versus the $7.34 billion estimate.

During an earnings call with analysts, CEO Gary Dickerson said that the current macroeconomic backdrop and trade issues have fueled "increasing uncertainty and lower visibility," primarily within its China business.

He also said the guidance does not account for pending export license applications and assumes a significant backlog.

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