Yahoo Finance What's in Store for Applied Materials (AMAT) in Q2 Earnings?
Applied Materials, Inc. AMAT is set to report second-quarter fiscal 2024 results on May 16.
For the fiscal second quarter, AMAT expects net sales of $6.50 billion (+/-$400 million). The Zacks Consensus Estimate for revenues is pegged at $6.51 billion, suggesting a decline of 1.8% from the year-ago quarter’s reading.
Applied Materials projects non-GAAP earnings of $1.79-$2.15 per share. The Zacks Consensus Estimate for earnings is pinned at $1.96 per share, indicating a decline of 2% from the year-ago quarter’s reported figure. The figure has been unchanged over the past 30 days.
AMAT’s bottom line surpassed the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 9.43%.
Applied Materials, Inc. Price and EPS Surprise
Applied Materials, Inc. price-eps-surprise | Applied Materials, Inc. Quote
Factors to Consider
Strength in the Applied Global Services (“AGS”) segment is likely to have contributed well to top-line growth of the company in the to-be-reported quarter. AMAT’s growing 200-millimeter business and solid momentum in the subscription business are likely to have driven segmental sales in the quarter under review.
For second-quarter fiscal 2024, Applied Materials’ projection for AGS sales is pegged at $1.50 billion. The Zacks Consensus Estimate for the same is pinned at $1.502 billion, indicating year-over-year growth of 5.2%.
Strengthening of the IoT, Communications, Auto, Power and Sensors (“ICAPS”) portfolio is expected to have benefited the company’s Semiconductor Systems segment in the quarter under review. Growth opportunities across specialty nodes and new nodes ramping across foundry, logic, NAND and DRAM are likely to have been positives.
However, a challenging geopolitical scenario due to escalating tensions between the United States and China is expected to have been a major concern for the company. The adverse impacts of restrictions imposed on China tech exports are anticipated to get reflected in the segment’s fiscal second-quarter results.
For second-quarter fiscal 2024, the company’s sales projection for Semiconductor Systems is pegged at $4.80 billion. The Zacks Consensus Estimate for the same is pinned at $4.802 billion, indicating a decline of 3.5% from the year-ago quarter’s actual.
Coming to the Display and Adjacent Markets segment, AMAT’s projection for this segment’s second-quarter fiscal 2024 sales is pegged at $150 million. The Zacks Consensus Estimate is also pegged at the same level, indicating a fall of 10.7% from the year-ago quarter’s actual.
What Our Model Says
Our proven model does not conclusively predicts an earnings beat for Applied Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Applied Materials has a Zacks Rank #3 and an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
NVIDIA NVDA has an Earnings ESP of +2.38% and sports a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
NVIDIA is scheduled to release first-quarter fiscal 2025 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, suggesting a significant jump from the prior-year quarter’s reported figure of $1.09 per share.
Abercrombie & Fitch ANF has an Earnings ESP of +5.10% and a Zacks Rank #2 at present.
Abercrombie & Fitch is set to report first-quarter 2024 results on May 29. The Zacks Consensus Estimate for ANF’s earnings is pegged at $1.54 per share, indicating a significant jump from the year-ago quarter’s reported figure of 39 cents per share.
Agilent Technologies A has an Earnings ESP of +0.42% and a Zacks Rank #3 at present.
Agilent Technologies is set to report its second-quarter fiscal 2024 results on May 29. The Zacks Consensus Estimate for A’s earnings is pegged at $1.19 per share.
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