What to Expect When Applied Materials Reports After the Markets Close

Applied Materials Inc. (NASDAQ: AMAT) is set to report its fiscal fourth-quarter financial results after the markets close on Thursday. The consensus estimates are calling for $0.76 in earnings per share (EPS) and $3.68 billion in revenue. The same period of last year reportedly had $0.97 in EPS and $4.01 billion in revenue.

After another stellar year for semiconductors and for the capital equipment stocks, many on Wall Street felt that both industries were due for a big-time breather. Given the trade issues and the cyclical nature of the industry, it seemed to make sense.

However, commentary from reporting companies in the semiconductor capital equipment space have some rethinking the fourth quarter and 2020, and it could prove to be a much better year than many were anticipating.

Analysts are very positive on Applied Materials and see the stock benefiting not only on the semiconductor side of the business but also from larger, higher resolution and flexible screens on the display side of the business.

Applied Materials previously issued guidance calling for EPS in the range of $0.72 to $0.80 and net sales of $3.685 billion, plus or minus $150 million.

Excluding Thursday’s move, Applied Materials had outperformed the broad markets, with the stock up about 74% year to date. In the past 52 weeks, the number was more or less the same.

A few analysts weighed in on Applied Materials ahead of the report:

  • Stifel’s Buy rating comes with a $67 price target.
  • Cowen rates it Outperform with a $65 price target.
  • Wells Fargo has a Buy rating with a $62 price target.
  • Craig Hallum has a Buy rating with a $58 price target.
  • Deutsche Bank rates it as Hold with a $52 price target.
  • Citigroup has a Buy rating with a $62 price target.

Shares of Applied Materials traded down about 1% to $56.55 on Thursday, in a 52-week range of $28.79 to $57.39. The consensus price target is $56.77.