What To Expect From Applied Materials’s (AMAT) Q2 Earnings

Adam Hejl /
2022/05/18 7:19 am EDT

Maker of machinery employed in semiconductor manufacturing, Applied Materials (NASDAQ:AMAT) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter Applied Materials reported revenues of $6.27 billion, up 21.4% year on year, beating analyst revenue expectations by 1.8%. It was a mixed quarter for the company, with a meaningful improvement in operating margin but an underwhelming 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 grow 13.7% year on year to $6.34 billion, slowing down from the 41% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.90 per share.

Applied Materials Total Revenue

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' peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Lam Research delivered top-line growth of 5.52% year on year, missing analyst estimates by 4.33% and Qualcomm reported revenues up 40.6% year on year, exceeding estimates by 5.32%. Lam Research traded down 3.68% on the results, and Qualcomm was up 4.32%. Read our full analysis of Lam Research's results here and Qualcomm's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 3.8% over the last month. Applied Materials is up 2.63% during the same time, and is heading into the earnings with analyst price target of $163.4, compared to share price of $115.57.

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The author has no position in any of the stocks mentioned.