- Applied Materials reported an adjusted EPS of $2.09, surpassing the estimate of $1.99 and the previous year’s figure of $2.
- The company’s second quarter net sales reached $6.65 billion, a slight increase of 0.2% year on year, beating the estimated $6.52 billion.
- Semiconductor Systems recorded net sales of $4.90 billion, seeing a minor drop of 1.5% compared to the previous year, but still ahead of the $4.8 billion estimate.
- Applied Global Services posted net sales of $1.53 billion, a growth of 7.1% year on year, exceeding the estimated $1.5 billion.
- Display and Adjacent Markets reported net sales of $179 million, a 6.5% increase from the same period last year, surmounting the estimate of $151.1 million.
- The company’s adjusted gross margin was 47.5%, an improvement from last year’s 46.8% and above the estimate of 47.3%.
- The forecast for the third quarter sees an adjusted EPS ranging from $1.83 to $2.19 with an estimate of $1.98.
- Applied expects its net revenue for the third quarter of the fiscal year 2024 to be about $6.65 billion, allowing for a possible deviation of $400 million.
- The company holds 27 buy ratings, 10 hold ratings, and 2 sell ratings.
Applied Materials on Smartkarma
Analyst coverage on Applied Materials on Smartkarma showcases different perspectives on the company. Baptista Research highlights the potential for growth in services revenue, with a focus on innovation strategies and market share in key industry segments. Revenue projections for the advanced packaging product portfolio indicate positive growth expectations for 2024.
However, William Keating takes a more cautious stance, pointing out flat revenues in the past quarter and suggesting downside risks for Wafer Fab Equipment in 2024. Despite concerns about short-term performance, Keating acknowledges Applied Materials as a strong company with long-term growth prospects. Investors can benefit from considering both bullish and bearish viewpoints in their investment decisions.
A look at Applied Materials Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
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 leading semiconductor wafer fabrication equipment provider, is poised for a positive long-term outlook based on the Smartkarma Smart Scores evaluation. With commendable scores in Growth, Resilience, and Momentum, the company demonstrates strength and potential for future expansion and market performance. The Growth and Resilience scores of 4 indicate a promising trajectory for the company’s development and ability to withstand market challenges, while the Momentum score of 5 suggests a strong upward trend in the company’s performance.
Although the Value and Dividend scores are not as high as the other factors, the overall outlook for Applied Materials remains optimistic. Investors may find the company attractive for its favorable Growth, Resilience, and Momentum ratings, indicating a solid foundation and potential for continued success in the dynamic 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.
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