Semiconductor machinery manufacturer Applied Materials (NASDAQ:AMAT) will be reporting results this Thursday after the bell. Here’s what to expect.
Applied Materials beat analysts’ revenue expectations last quarter, reporting revenues of $7.91 billion, up 11.4% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ operating income estimates.
Is Applied Materials a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Applied Materials’s revenue to grow 23.8% year on year, improving from the 7.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Applied Materials rarely misses Wall Street’s revenue estimates.
Looking at Applied Materials’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kulicke and Soffa delivered year-on-year revenue growth of 123%, beating analysts’ expectations by 5.7%, and FormFactor reported revenues up 31.9%, topping estimates by 7.6%. Kulicke and Soffa traded down 3.4% following the results while FormFactor was up 26.3%.
Read our full analysis of Kulicke and Soffa’s results here and FormFactor’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the semiconductor manufacturing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Applied Materials is down 8.2% during the same time and is heading into earnings with an average analyst price target of $633.34 (compared to the current share price of $527.90).
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