- Adjusted earnings per share (EPS) of $2.48 exceeded the estimated $2.36, compared to last year’s $2.12.
- Net sales increased by 7.7% year-over-year, reaching $7.30 billion, slightly above the $7.21 billion estimate.
- Semiconductor Systems net sales rose 10% year-over-year to $5.43 billion, surpassing the $5.39 billion estimate.
- Applied Global Services reported a 1.3% increase in net sales, totaling $1.60 billion, again beating the $1.55 billion estimate.
- Display and Adjacent Markets net sales grew 4.8% year-over-year, reaching $263 million, higher than the expected $250.1 million.
- The adjusted gross margin improved to 48.9%, compared to last year’s 47.4% and above the 48.3% estimate.
- Despite positive quarterly results, Applied Materials cautioned about near-term uncertainties and reduced visibility due to macroeconomic and policy challenges, particularly concerning their China business.
- The company anticipates a revenue decline in the fourth quarter, citing capacity digestion in China and uneven demand from advanced market customers.
- In post-market trading, shares fell by 3% to $182.68 with 8,101 shares traded.
- Analyst rating summary shows 26 buys, 15 holds, and 1 sell.
“`
Applied Materials on Smartkarma
Analyst coverage of Applied Materials on Smartkarma by Baptista Research highlights significant advancements in chip design and technology innovation. In their report titled “Applied Materials (AMAT) Is Revolutionizing Chip Design With Breakthrough Packaging Technology; What Lies Ahead?”, strong results were reported for the second quarter of fiscal year 2025. Applied Materials achieved record earnings per share and robust financial performance, with total net revenue reaching approximately $7.1 billion, showing a 7% increase year-over-year. Non-GAAP earnings per share also rose by 14% to a record $2.39, driven by revenue growth and improved profitability.
Baptista Research further delves into Applied Materials‘ performance in their report “Applied Materials (AMAT): Is It The Ultimate Winner in Gate-All-Around Transistor Innovations?”. The company demonstrated strong performance in the first quarter of fiscal year 2025, surpassing previous revenue levels. They emphasized the role of advanced semiconductors in driving this growth, particularly through technologies like artificial intelligence (AI) that are reshaping the global economy. The report highlights that AI has contributed to a 20% year-over-year growth in global semiconductor sales in 2024, with projections hinting at a potential market revenue exceeding $1 trillion annually by 2030.
A look at Applied Materials Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
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
Applied Materials, Inc., a company specializing in semiconductor wafer fabrication equipment, is positioned for a solid long-term outlook based on the Smartkarma Smart Scores. With a promising Growth score of 3, the company is expected to expand and develop in the coming years. Additionally, boasting a top-tier Momentum score of 5, Applied Materials demonstrates strong market performance and investor interest, signaling a positive trajectory for the future. Moreover, its above-average Resilience score of 4 indicates the company’s ability to withstand economic fluctuations and market challenges, further enhancing its stability.
In terms of Value and Dividend scores, Applied Materials received a rating of 2 for both factors, suggesting a moderate standing in these areas. While not the highest scores, they still indicate a reasonable valuation and dividend outlook for the company. Overall, with a solid foundation in the semiconductor industry and favorable Smartkarma Smart Scores, Applied Materials appears well-positioned for long-term growth and success in the market.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
