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Materials Used (NASDAQ: AMAT) plans to announce Q4 earnings results on Thursday, Nov. 17, after the market closes.
The adjusted EPS estimate is $1.75 (-9.8% Y/Y) and the adjusted revenue estimate is $6.44B (+5.2% Y/Y).
Over the past 2 years, AMAT has beaten EPS and earnings estimates 75% of the time.
Over the past three months, EPS estimates have seen 3 upward revisions and 18 downward revisions. Estimated earnings have seen 4 revisions up and 14 down.
The chipmaker’s stock fell after it released its Q4 outlook to highlight new regulations governing chips, which are expected to reduce Q4 sales by ~$400M.
In addition, data from the Semiconductor Industry Association Worldwide showed a decline in semiconductor sales, below 6% sequentially, for the quarter ended Sept. 30.
But New Street Research upgraded Applied Materials (AMAT), saying that the pain in the chip industry should end soon and now may be a good time to start construction.
Bank of America remains bullish on Applied Materials (AMAT) due to optimism surrounding the CHIPS Act. Recently, it has been reported that the bull of semiconductors is starting to become compelling due to high profits, high barriers to entry and chip stocks’ poor performance.
UBS also included Applied Materials (AMAT) in its technology list “due to its leadership in semiconductor equipment, which benefits from high demand driven by big data and AI”.
Q3 summary:
- Shares of the semiconductor company rose sharply after its Q3 results beat expectations and its guidance appeared to ease fears of a downturn.
- However, some experts have noted that there may be a softening of the memory market in 2023.
- But Mr Needham expects to see a change in trend and consistent growth through Q2 2023.
SA analyst Cory Cramer said Applied Materials (AMAT) is a top-performing stock but highly cyclical, rating the stock a Hold at the moment while waiting for a bearish spot.
Shares of Applied Materials ( AMAT ) have fallen 34.5% over the past year, underperforming the S&P 500 index.
