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UPDATE 1-Applied Materials beats profit estimates, shares rise

(Adds details, shares)

Aug 17 (Reuters) - Applied Materials Inc, the world's largest supplier of tools used to make semiconductors, reported a better-than-expected quarterly profit helped by strong growth in its semiconductor business.

Shares of the company rose 4.2 percent to $44.95 in extended trading on Thursday.

Revenue from its semiconductor business, the company's largest, rose 41.8 percent to $2.53 billion, in line with analysts' estimates, according to financial data and analytics firm FactSet.

Applied Materials, whose results are seen as the bellwether for the chip industry, has been benefiting from higher demand for 3D NAND memory chips from smartphone makers and the shift to organic light-emitting diode technology for displays.

The company forecast fourth-quarter adjusted profit of 86- 94 cents per share and net sales of $3.85 billion to $4 billion.

Analysts on average had expected a fourth-quarter profit of 82 cents and revenue of $3.71 billion, according to Thomson Reuters I/B/E/S.

Net income rose to $925 million, or 85 cents per share, in the third quarter ended July 30, from $505 million, or 46 cents per share, a year earlier.

Excluding items, the company earned 86 cents per share. Total net sales rose 32.7 percent to $3.74 billion.

Analysts on average had expected the company to earn 84 cents per share on revenue of $3.69 billion. (Reporting by Laharee Chatterjee; Editing by Shounak Dasgupta)