Applied Materials (AMAT) To Report Earnings Tomorrow: Here Is What To Expect

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

Applied Materials beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $6.65 billion, flat year on year. It was a decent quarter for the company, with a solid beat of analysts’ EPS estimates and in-line revenue 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 grow 3.8% year on year to $6.67 billion, a reversal from the 1.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.02 per share.

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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.4% on average.

Looking at Applied Materials’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 26.7%, beating analysts’ expectations by 1.3%, and Lam Research reported revenues up 20.7%, topping estimates by 1%. FormFactor traded down 11.8% following the results while Lam Research was also down 10%.

Read our full analysis of FormFactor’s results here and Lam Research’s results here.

Growth stocks have been quite volatile since the start of 2024, and semiconductor manufacturing stocks have been swept alongside with it, with share prices down 17.2% on average over the last month. Applied Materials is down 18.1% during the same time and is heading into earnings with an average analyst price target of $243.7 (compared to the current share price of $201.3).

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