Maker of machinery employed in semiconductor manufacturing, Applied Materials (NASDAQ:AMAT) will be reporting results tomorrow afternoon. Here's what to expect.
Last quarter Applied Materials reported revenues of $6.24 billion, up 11.8% year on year, missing analyst expectations by 1.63%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst estimates.
Is Applied Materials buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Applied Materials's revenue to grow 1.16% year on year to $6.26 billion, slowing down from the 40.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.79 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.
Looking at Applied Materials's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Lam Research delivered top-line growth of 11.8% year on year, beating analyst estimates by 10% and Microchip Technology reported revenues up 25.1% year on year, exceeding estimates by 0.61%. Lam Research traded up 2.45% on the results, and Microchip Technology was up 1.34%. Read our full analysis of Lam Research's results here and Microchip Technology's results here.
There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 11.6% over the last month. Applied Materials is up 11.2% during the same time, and is heading into the earnings with analyst price target of $133.4, compared to share price of $107.39.
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The author has no position in any of the stocks mentioned.