PhonlamaiPhoto/iStock via Getty Images
Applied Materials (NASDAQ:AMAT) is scheduled to announce Q1 earnings results on Wednesday, Feb. 16, after market close.
The consensus EPS estimate is $1.85 (+33.1% Y/Y) and the consensus revenue estimate is $6.16B (+19.4% Y/Y).
Over the last 2 years, AMAT has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 0 upward revisions and 19 downward. Revenue estimates have seen 0 upward revisions and 17 downward.
AMAT had tumbled 7% after posting Q4 results that missed expectations and forecasting a disappointing profit figure for Q1.
Investors reacted negatively to AMAT’s bleak outlook owing to supply chain issues. CEO Gary Dickerson said while there was no shortage of semiconductor demand, supply shortages were impacting AMAT’s business. The firm provided the following outlook for Q1:
At the time, Dickerson warned that supply shortages of silicon parts would persist in the near-term. But he noted that the supply chain issues will get “incrementally better going forward”.
Last month, Citi said stocks like AMAT should be bought as they would likely benefit from “secular growth drivers” such as 3D devices, advanced packaging and govt. spending.
Jefferies analyst Mark Lipacis recently initiated coverage on AMAT with Buy rating and said it will “post [free cash flow] per share growth at 34% in 2022”.
On average, analysts have rated AMAT a Buy. Of the 32 analysts tracked by SA over the past 90 days, 15 rated the stock a Strong Buy, 6 Buy and 11 Hold.
Earlier in the month, SA contributor Hale Stewart wrote “Applied Materials: Supplying Key Hardware To A Core Industry”, rating the stock Buy. He noted that AMAT not only has a large order backlog, but also strong fundamentals and a good chart.
Late last year, AMAT and the Institute of Microelectronics (IME) inked a 5-year extension to their R&D engagement, including an expansion of the Applied Materials–IME Center of Excellence in Advanced Packaging in Singapore.
AMAT stock, which rose 5% a day before reporting Q1 results, has gained 13% in 1 year. The stock underperformed the S&P 500 index over the past year.
