What To Expect From Applied Materials's (AMAT) Q1 Earnings

Anthony Lee /
2024/05/15 3:01 am EDT

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.

Applied Materials beat analysts' revenue expectations by 3.4% last quarter, reporting revenues of $6.71 billion, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and strong sales guidance for the next quarter.

Is Applied Materials a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Applied Materials's revenue to decline 1.4% year on year to $6.54 billion, a reversal from the 6.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.99 per share.

Applied Materials Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Applied Materials has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3% on average.

Looking at Applied Materials's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Lam Research's revenues decreased 2% year on year, beating analysts' expectations by 1.7%, and KLA Corporation reported a revenue decline of 3%, topping estimates by 1.7%. Lam Research traded up 1.9% following the results while KLA Corporation was also up 4.7%.

Read our full analysis of Lam Research's results here and KLA Corporation's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 7.7% on average over the last month. Applied Materials's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $219.9 (compared to the current share price of $210.12).

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