Maker of machinery employed in semiconductor manufacturing, Applied Materials (NASDAQ:AMAT) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Last quarter Applied Materials reported revenues of $6.75 billion, up 10.2% year on year, beating analyst revenue expectations by 4.85%. It was a decent quarter for the company, with a beat on the bottom line but slow revenue growth.
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 6.14% year on year to $6.66 billion, slowing down from the 21.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.92 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 Q1 earnings results, giving us a hint of what we can expect. Kulicke and Soffa's revenues decreased 61.8% year on year, missing analyst estimates by 0.15% and FormFactor reported revenue decline of 19% year on year, exceeding estimates by 6.89%. Kulicke and Soffa traded up 1.19% on the results, FormFactor was up 1.97%. Read our full analysis of Kulicke and Soffa's results here and FormFactor's results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 9.65% over the last month. Applied Materials is up 6.33% during the same time, and is heading into the earnings with analyst price target of $122.00, compared to share price of $116.95.
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The author has no position in any of the stocks mentioned.