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Applied Materials (AMAT) to Post Q3 Earnings: What's in Store?
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Applied Materials, Inc. (AMAT - Free Report) is set to report third-quarter fiscal 2021 results on Aug 19.
For the fiscal third quarter, the company expects net sales of $5.92 (+/-$200 million). The Zacks Consensus Estimate for revenues is pegged at $5.92 billion, suggesting growth of 34.7% from the year-ago reported figure.
Applied Materials projects non-GAAP earnings of $1.70-$1.82 per share for the quarter under review. The Zacks Consensus Estimate for earnings is pegged at $1.76, indicating growth of 66.04% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 8.96%, on average.
Applied Materials’ portfolio strength along with increasing design wins are expected to have contributed well to its fiscal third-quarter results.
Rising customer spending in foundry and logic on the back of increasing need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets is expected to have been a tailwind.
Strong momentum in conductor etches is likely to have continued benefiting the company’s position in DRAM and NAND. Inventory reductions across memory and demand elasticity in NAND are anticipated to have acted as tailwinds.
These factors are expected to have driven top-line growth of the company in the to-be-reported quarter.
Coming to the segments, strength across Applied Materials’ Semiconductor Systems Group segment on the back of its growing traction across etch, process control, inspection, metal deposition systems and chemical-mechanical planarization is anticipated to have continued aiding its performance in the quarter under review. For third-quarter fiscal 2021, the Zacks Consensus Estimate for sales for the segment is pegged at $4.25 billion, suggesting growth of 45.7% from the prior-year quarter’s reported figure.
The company’s solid momentum among long-term service agreements is likely to have driven top-line growth for the Applied Global Services segment in the soon-to-be-reported quarter. For third-quarter fiscal 2021, the consensus mark for the segment’s sales is pegged at $1.23 billion, suggesting year-over-year growth of 18.9%
Applied Materials’ growing research and development activities, and increasing use of OLED technology in several devices are anticipated to have aided the performance of its Display and Adjacent Markets segment in the quarter under review.
However, market uncertainties are likely to have continued impacting the company negatively.
The Zacks Consensus Estimate for display sales is pegged at $415 million, indicating a year-over-year decline of 2.3%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Applied Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Applied Materials has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat this quarter:
Image: Bigstock
Applied Materials (AMAT) to Post Q3 Earnings: What's in Store?
Applied Materials, Inc. (AMAT - Free Report) is set to report third-quarter fiscal 2021 results on Aug 19.
For the fiscal third quarter, the company expects net sales of $5.92 (+/-$200 million). The Zacks Consensus Estimate for revenues is pegged at $5.92 billion, suggesting growth of 34.7% from the year-ago reported figure.
Applied Materials projects non-GAAP earnings of $1.70-$1.82 per share for the quarter under review. The Zacks Consensus Estimate for earnings is pegged at $1.76, indicating growth of 66.04% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 8.96%, on average.
Applied Materials, Inc. Price and EPS Surprise
Applied Materials, Inc. price-eps-surprise | Applied Materials, Inc. Quote
Factors to Consider
Applied Materials’ portfolio strength along with increasing design wins are expected to have contributed well to its fiscal third-quarter results.
Rising customer spending in foundry and logic on the back of increasing need for specialty nodes in automotive, power, 5G rollout, IoT, communications and image sensor markets is expected to have been a tailwind.
Strong momentum in conductor etches is likely to have continued benefiting the company’s position in DRAM and NAND. Inventory reductions across memory and demand elasticity in NAND are anticipated to have acted as tailwinds.
These factors are expected to have driven top-line growth of the company in the to-be-reported quarter.
Coming to the segments, strength across Applied Materials’ Semiconductor Systems Group segment on the back of its growing traction across etch, process control, inspection, metal deposition systems and chemical-mechanical planarization is anticipated to have continued aiding its performance in the quarter under review. For third-quarter fiscal 2021, the Zacks Consensus Estimate for sales for the segment is pegged at $4.25 billion, suggesting growth of 45.7% from the prior-year quarter’s reported figure.
The company’s solid momentum among long-term service agreements is likely to have driven top-line growth for the Applied Global Services segment in the soon-to-be-reported quarter. For third-quarter fiscal 2021, the consensus mark for the segment’s sales is pegged at $1.23 billion, suggesting year-over-year growth of 18.9%
Applied Materials’ growing research and development activities, and increasing use of OLED technology in several devices are anticipated to have aided the performance of its Display and Adjacent Markets segment in the quarter under review.
However, market uncertainties are likely to have continued impacting the company negatively.
The Zacks Consensus Estimate for display sales is pegged at $415 million, indicating a year-over-year decline of 2.3%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Applied Materials this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Applied Materials has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are some companies, which have the right combination of elements to post an earnings beat this quarter:
HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cisco Systems, Inc. (CSCO - Free Report) presently has an Earnings ESP of +1.82% and a Zacks Rank of 3.
salesforce.com, inc. (CRM - Free Report) currently has an Earnings ESP of +1.02% and a Zacks Rank of 3.