- Applied Materials‘ adjusted earnings per share (EPS) for the first quarter is $2.38, surpassing last year’s $2.13 and exceeding the estimate of $2.28.
- Net sales for the company reached $7.17 billion, marking a 6.8% increase year-over-year, and slightly beating the estimated $7.15 billion.
- Semiconductor Systems division reported net sales of $5.36 billion, which is a 9.1% rise year-over-year, surpassing the expected $5.33 billion.
- The Applied Global Services division achieved net sales of $1.59 billion, showing an 8% increase year-over-year, though slightly below the estimated $1.65 billion.
- Display and Adjacent Markets net sales amounted to $183 million, a 25% decline year-over-year, but above the estimated $174.5 million.
- The company’s adjusted gross margin improved to 48.9%, up from last year’s 47.9% and better than the forecast of 48.4%.
- Market analysts’ ratings consist of 30 buys, 12 holds, and 2 sells for Applied Materials.
Applied Materials on Smartkarma
Analysts on Smartkarma, such as Baptista Research and Nicolas Baratte, have published bullish reports on Applied Materials (AMAT). Baptista Research highlighted the company’s strong performance in the fourth quarter and fiscal year 2024, with record revenue and earnings for five consecutive years, emphasizing the effectiveness of its strategic execution. Meanwhile, Nicolas Baratte‘s insight pointed out that AMAT is reasonably valued on modest expectations, positioning it as more attractive than its competitor ASML. Baratte also noted the company’s potential for growth acceleration in areas like Advanced Logic and Advanced Packaging, despite risks associated with China’s Capex slowdown.
Baptista Research‘s coverage further emphasizes Applied Materials‘ success in the third quarter of fiscal year 2024, with record revenues and solid earnings. The company is benefiting from market demand in Integrated Circuit and Advanced Packaging Systems (ICAPS) and semiconductors, aligning well with current technology trends like AI, IoT, and clean energy. Baptista Research seeks to evaluate various factors influencing the company’s future stock price and is conducting an independent valuation through a Discounted Cash Flow (DCF) methodology, reflecting optimism regarding Applied Materials‘ growth potential.
A look at Applied Materials Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Analysts have assessed Applied Materials using the Smartkarma Smart Scores, which provide an indication of the company’s long-term outlook across various factors. With a strong Growth score of 4 and a Resilience score of 4, Applied Materials is positioned well for future development and stability in the market. These scores reflect positively on the company’s potential for expansion and its ability to weather economic uncertainties.
Although the Value and Dividend scores are moderate at 2, indicating there may be areas for improvement in terms of valuation and dividend payouts, Applied Materials‘ Momentum score of 3 suggests decent traction in the market. Overall, the company’s focus on developing semiconductor wafer fabrication equipment for a global customer base places it in a favorable position for long-term success.
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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