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Applied Materials, Inc. (AMAT), headquartered in Santa Clara, California, is a significant provider in the semiconductor and display industries, specializing in materials engineering solutions and advanced manufacturing technologies, with a market cap of $154.4 billion. The company is set to announce its Q4 earnings on Thursday, Nov. 21.
Ahead of the event, analysts expect AMAT to report a profit of $2.18 per share, up 2.8% from $2.12 in the year-ago quarter. The company has consistently topped Wall Street's earnings estimates in the past four quarters.
Its adjusted earnings of $2.12 per share for the last quarter surpassed the consensus estimate by 5.5%. Applied Materials' Q3 results were boosted by strong growth in Semiconductor Systems and Applied Global Services, alongside robust demand in key markets, driving revenue and earnings above expectations.
For fiscal 2024, analysts expect AMAT to report an EPS of $8.51, up 5.7% from $8.05 in fiscal 2023.
AMAT stock is up 14.4% YTD, underperforming the broader S&P 500 Index's ($SPX) 22.1% gains and the Technology Select Sector SPDR Fund’s (XLK) 19.6% gain over the same time frame.
Applied Materials’ underperformance compared to the broader sector can be attributed to a decrease in demand for semiconductor equipment due to global economic uncertainty and trade tensions.
However, Applied Materials shares gained over 1.9% in the following trading session following its Q3 earnings results reported on Aug. 15. Fiscal third-quarter revenues reached $6.78 billion, a 5% year-over-year increase. Also, Applied Materials rose over 5% as part of a broader rally in chip stocks, boosting the Nasdaq 100 to a two-month high on Sept. 20.
The consensus opinion on AMAT stock is moderately bullish, with an overall “Moderate Buy” rating. Of 33 analysts covering the stock, 20 advise a “Strong Buy” rating, two indicate a “Moderate Buy,” and 11 suggest a “Hold.”
AMAT's average analyst price target is $234.13, suggesting a potential upside of 26.3% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
