Applied Materials Set to Reveal Q1 Earnings with Optimistic Projections
With a market capitalization of $156.3 billion, Applied Materials, Inc. (AMAT) specializes in providing advanced manufacturing equipment, services, and software tailored for the semiconductor and display industries. This support assists manufacturers in enhancing device performance and reducing costs. Based in Santa Clara, California, the company is preparing to release its fiscal Q1 2025 earnings results on Thursday, February 20.
Analysts anticipate a profit of $2.28 per share for the upcoming report, marking a 7% increase over last year’s $2.13 per share. Over the past four quarters, AMAT has consistently outperformed Wall Street’s earnings expectations. Most notably, the company surpassed the consensus EPS estimate by 6.4% in its last quarter.
For fiscal 2025, predictions suggest an EPS of $9.37, reflecting an 8.3% increase from $8.65 in fiscal 2024, with further growth expected to reach $10.16 in fiscal 2026, an increase of 8.4% year-over-year.
Over the past year, shares of Applied Materials have increased by 25.2%. This performance is slightly below the broader S&P 500 Index’s 26.5% gain, yet it surpasses the Technology Select Sector SPDR Fund’s (XLK) 22.1% return during the same timeframe.
Despite posting better-than-expected adjusted EPS of $2.32 and revenue of $7.1 billion on November 14, the stock of Applied Materials fell by 9.2% the following day. The drop was primarily attributed to disappointing Q1 2025 guidance, amid challenges from the ongoing tech tensions with China. These tensions have prompted the company to reduce operations to comply with regulations that affect advanced semiconductor technologies, thereby impacting revenue outlooks. The projected Q1 revenue of $7.1 billion to $7.2 billion did not meet expectations, particularly with a forecasted 28% decrease in display revenue. Although the adjusted EPS forecast of $2.11 – $2.47 slightly exceeded projections, worries about revenue growth fueled the decline.
Overall, analysts express a cautiously optimistic consensus regarding AMAT stock, assigning it a “Moderate Buy” rating. Among 33 analysts monitoring the stock, 20 recommend a “Strong Buy,” 2 suggest a “Moderate Buy,” while 10 prefer a “Hold,” and 1 advises a “Strong Sell.” The average analyst price target for AMAT is $211.50, indicating a potential upside of 10.1% based on current trading levels.
On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data presented in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
