Maker of machinery employed in semiconductor manufacturing, Applied Materials (NASDAQ:AMAT) will be reporting earnings tomorrow after market close. Here's what to expect.
Last quarter Applied Materials reported revenues of $6.43 billion, down 1.5% year on year, beating analyst revenue expectations by 4.3%. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.
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 decline 3.6% year on year to $6.50 billion, a deceleration on the 10.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.99 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 semiconductor manufacturing segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Teradyne's revenues decreased 14.9% year on year, beating analyst estimates by 2.9% and Lam Research reported revenue decline of 31.4% year on year, exceeding estimates by 1.9%. Teradyne traded flat on the results, Lam Research was down 3.5%.
Read our full analysis of Teradyne's results here and Lam Research's results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 2.6% over the last month. Applied Materials is up 8.2% during the same time, and is heading into the earnings with analyst price target of $159.5, compared to share price of $154.47.
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The author has no position in any of the stocks mentioned.