- Applied Materials‘ fourth-quarter adjusted earnings per share (EPS) were $2.32, higher than the previous year’s $2.12 and beating the estimate of $2.19.
- The net sales for the quarter were $7.05 billion, reflecting a 4.8% increase year-over-year, surpassing the forecast of $6.97 billion.
- Semiconductor Systems achieved net sales of $5.18 billion, marking a 6% year-over-year growth and exceeding the estimate of $5.13 billion.
- The Applied Global Services segment reported net sales of $1.64 billion, an 11% increase from last year, above the predicted $1.61 billion.
- The adjusted gross margin was 47.5%, slightly up from last year’s 47.3% and slightly above the estimate of 47.4%.
- For the first quarter of fiscal 2025, Applied Materials projects net revenue to be approximately $7.15 billion, with a variance of $400 million.
- The current market stance is positive, with 30 buy recommendations, 13 holds, and only 1 sell.
Applied Materials on Smartkarma
On Smartkarma, a hub for independent investment research, analysts are closely following Applied Materials Inc. (AMAT). Baptista Research, in their report “Applied Materials Inc. (AMAT): Benefitting From The Market Demand in ICAPS and Semiconductors! – Major Drivers,” highlights the company’s robust financial results for the third quarter of fiscal year 2024. They emphasize Applied Materials‘ position in sectors like AI, IoT, and clean energy driving demand for advanced semiconductor technology. Baptista Research aims to assess the various factors influencing the company’s stock price, conducting an independent valuation using a Discounted Cash Flow (DCF) methodology.
Another report by Baptista Research, “Applied Materials Inc.: Advanced Packaging and High-bandwidth Memory (HBM) Growth & Other Major Drivers,” underlines the company’s strong performance in the second quarter of 2024. They note Applied Materials‘ alignment with long-term technology trends such as AI, IoT, and electric vehicles, indicating potential growth in chip manufacturing capacity. The analysis suggests that Applied Materials plays a pivotal role in advancing next-generation chip technologies, positioning the company for outperformance in large-scale chip production.
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
Applied Materials, Inc., a prominent player in the semiconductor industry, is positioned with a mixed outlook based on the Smartkarma Smart Scores. The company’s growth and resilience factors have been rated positively, scoring 4 out of 5 for both aspects. This indicates a favorable long-term outlook in terms of potential expansion and ability to weather market challenges. Moreover, with moderate scores in value and dividend factors at 2 out of 5, Applied Materials showcases stability and potential for future returns.
However, the company lags slightly behind in momentum, scoring a 3 out of 5, which could suggest a need for increased market presence or strategic initiatives to enhance performance in this area. As Applied Materials continues to develop, manufacture, and service semiconductor equipment for a global client base, leveraging its strengths in growth and resilience may be key to securing a strong position in the evolving semiconductor industry.
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
