- Applied Materials reported an adjusted earnings per share (EPS) of $2.39 for Q2 2025, surpassing the estimate of $2.31 and reflecting an increase from $2.09 year over year (y/y).
- Total net sales for the quarter reached $7.10 billion, marking a 6.8% increase y/y, though slightly below the estimated $7.13 billion.
- Semiconductor Systems net sales amounted to $5.26 billion, a 7.2% rise y/y, but did not meet the $5.31 billion estimate.
- Sales for Applied Global Services were $1.57 billion, an increase of 2.4% y/y, surpassing the $1.55 billion forecast.
- Display and Adjacent Markets segment saw a remarkable 45% increase in net sales, totaling $259 million, above the anticipated $248 million.
- The company achieved an adjusted gross margin of 49.2%, up from 47.5% y/y, exceeding the 48.4% estimate.
- CEO Gary Dickerson attributed strong results to Applied Materials‘ broad capabilities and product portfolio, despite a dynamic economic environment.
- Shares of Applied Materials fell 2.6% in post-market trading, closing at $170.22 with 18,939 shares traded.
Applied Materials on Smartkarma
On Smartkarma, renowned independent research network, analysts from Baptista Research have been closely covering Applied Materials. In one insightful report titled “Applied Materials (AMAT): Is It The Ultimate Winner in Gate-All-Around Transistor Innovations?”, the analysts expressed a bullish sentiment. In the analysis, Baptista Research highlighted Applied Materials‘ strong performance in the first quarter of fiscal year 2025, achieving record revenue levels primarily driven by advanced semiconductors. The company’s strategic focus on technologies like artificial intelligence (AI) has been identified as a significant growth driver, with forecasts suggesting a remarkable potential for global semiconductor sales to exceed $1 trillion annually by 2030.
Another report by Baptista Research focused on China market trends and normalization in relation to Applied Materials, titled “Applied Materials (AMAT): China Market Trends & Normalization Driving Our Optimism! – Major Drivers”. The analysts shared a positive outlook, emphasizing the company’s recent fourth-quarter and fiscal year 2024 results that showcased record revenue and earnings. This marked milestone reflects five consecutive years of growth, underscoring the effectiveness of Applied Materials‘ strategic initiatives and operational excellence driven by a dedicated global team.
A look at Applied Materials Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Applied Materials shows a promising long-term outlook. With solid scores in Growth, Resilience, and Momentum, the company appears to have a positive trajectory ahead. Applied Materials‘ focus on value and dividends, while not the highest, still indicates stability and potential for growth.
Applied Materials, Inc. is a key player in the semiconductor industry, providing essential equipment and services to manufacturers worldwide. Its diverse customer base, including semiconductor, display, solar, and electronic device manufacturers, positions the company well in various sectors. With a balanced approach to financial factors such as value, dividends, growth, resilience, and momentum, Applied Materials seems well-positioned for sustained success in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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