Wall Street anticipates an EPS of $1.96 with revenue estimates of approximately $6.54 billion for the upcoming quarter.
The company forecasts revenue in the range of $6.50 billion, aligning closely with the Zacks consensus estimate of $6.51 billion, indicating a slight year-over-year decline.
Applied Materials has a history of surpassing earnings estimates, with an average earnings surprise of 9.43% over the past four quarters.
Applied Materials, Inc. (NASDAQ:AMAT), a leading company in the semiconductor equipment industry, is gearing up to release its quarterly earnings report on Thursday, May 16, 2024, after the market closes. The company, known for its contributions to the semiconductor manufacturing process, faces stiff competition from other industry giants but continues to hold a significant market share due to its innovative solutions and comprehensive service offerings. Wall Street has set its sights on an earnings per share (EPS) of $1.96, with revenue estimates hovering around $6.54 billion for the quarter.
The upcoming earnings report is particularly noteworthy as it encompasses the performance of Applied Materials’ Applied Global Services segment and the ICAPS portfolio, despite the backdrop of macroeconomic challenges. The company has provided a revenue forecast in the range of $6.50 billion, with a possible variation of plus or minus $400 million, closely aligning with the Zacks Consensus Estimate of $6.51 billion. This estimate suggests a slight year-over-year decline of 1.8%, reflecting the broader economic pressures faced by the sector.
For non-GAAP earnings, Applied Materials has set expectations between $1.79 and $2.15 per share. The consensus among analysts, as reported by Zacks Investment Research, pegs the EPS at $1.96, indicating a modest 2% decrease from the earnings reported in the same quarter of the previous year. This stability in earnings estimates over the last 30 days, despite a slight downward adjustment of 0.3%, underscores the analysts’ confidence in the company’s performance amidst uncertain market conditions.
Historically, Applied Materials has demonstrated a strong track record of surpassing the Zacks Consensus Estimate for earnings, with an average earnings surprise of 9.43% over the past four quarters. This consistent performance suggests that the company might once again exceed Wall Street’s expectations. The focus on the Applied Global Services segment and the ICAPS portfolio, which includes integrated circuit, advanced packaging, and services, highlights the company’s strategic emphasis on high-demand semiconductor solutions, potentially driving its success in the current fiscal quarter.
The financial health and market valuation of Applied Materials are further underscored by its price-to-earnings (P/E) ratio of approximately 24.36, indicating investor willingness to pay for its earnings. The company’s price-to-sales (P/S) ratio of about 6.58 and an enterprise value-to-sales (EV/Sales) ratio close to 6.55 reflect the market’s valuation of its sales. With an enterprise value-to-operating cash flow (EV/OCF) ratio of around 19.81 and a debt-to-equity (D/E) ratio of about 0.33, Applied Materials showcases a balanced capital structure and strong liquidity position, as evidenced by its current ratio of roughly 2.71. These financial metrics provide a comprehensive view of the company’s financial stability and market position ahead of its anticipated earnings report.
