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What's in Store for Applied Materials (AMAT) in Q1 Earnings?
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Applied Materials, Inc. (AMAT - Free Report) is set to report first-quarter fiscal 2023 results on Feb 16.
For the fiscal first quarter, AMAT expects net sales of $6.7 billion (+/-$400 million). The Zacks Consensus Estimate for revenues is pegged at $6.69 billion, suggesting growth of 6.6% from the year-ago quarter’s actuals.
Applied Materials projects non-GAAP earnings per share of $1.93 (+/-0.18) per share. The Zacks Consensus Estimate for earnings is pegged at $1.93, indicating growth of 2.1% from the year-ago quarter’s reported figure.
AMAT’s bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed it once, the average earnings surprise being 6.76%.
Applied Materials’ portfolio strength, expanding position in memory and increasing design wins are likely to have driven its performance in the fiscal first quarter.
Growth opportunities across specialty nodes and new nodes ramping across foundry, logic, NAND and DRAM are expected to have benefited AMAT in the to-be-reported quarter. Inventory reductions across memory and demand elasticity in NAND are likely to have acted as other tailwinds.
Applied Materials is anticipated to have witnessed solid customer momentum across automotive and advanced packaging, owing to rising foundry logic spending.
All these factors are expected to have driven sales in the Semiconductor Systems Group segment in the to-be-reported quarter. For first-quarter fiscal 2023, the company’s projection for sales in the segment stands at $5.15 billion.
The growing adoption of IoT, AI and Big Data is expected to have contributed to the performance in the quarter under review.
In the Applied Global Services ("AGS") segment, AMAT’s growing 200-millimeter business and solid momentum among long-term service agreements are likely to have driven segmental sales in the quarter under review. For first-quarter fiscal 2023, Applied Materials’ projection for AGS sales stands at $1.33 billion.
However, Applied Materials is likely to have continued suffering from sluggishness in its Display and Adjacent Markets segment in the quarter under review. For first-quarter fiscal 2023, AMAT’s projection for this segment’s sales is $170 million.
Uncertainties related to the COVID-19 pandemic and geo-political tensions are likely to have induced headwinds for AMAT in the to-be-reported quarter.
What Our Model Says
Our proven model conclusively predicts 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 +0.42% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these also have the right combination of elements to beat on earnings this season.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.
Endava (DAVA - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #2 at present.
Endava is set to report its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
DraftKings (DKNG - Free Report) has an Earnings ESP of +8.35% and a Zacks Rank #3 at present.
DraftKings is scheduled to release its fourth-quarter 2022 results on Feb 16. The Zacks Consensus Estimate for DKNG’s loss is pegged at 63 cents per share. The company reported a loss of 80 cents per share in the prior-year quarter.
Image: Shutterstock
What's in Store for Applied Materials (AMAT) in Q1 Earnings?
Applied Materials, Inc. (AMAT - Free Report) is set to report first-quarter fiscal 2023 results on Feb 16.
For the fiscal first quarter, AMAT expects net sales of $6.7 billion (+/-$400 million). The Zacks Consensus Estimate for revenues is pegged at $6.69 billion, suggesting growth of 6.6% from the year-ago quarter’s actuals.
Applied Materials projects non-GAAP earnings per share of $1.93 (+/-0.18) per share. The Zacks Consensus Estimate for earnings is pegged at $1.93, indicating growth of 2.1% from the year-ago quarter’s reported figure.
AMAT’s bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed it once, the average earnings surprise being 6.76%.
Applied Materials, Inc. Price and EPS Surprise
Applied Materials, Inc. price-eps-surprise | Applied Materials, Inc. Quote
Factors to Consider
Applied Materials’ portfolio strength, expanding position in memory and increasing design wins are likely to have driven its performance in the fiscal first quarter.
Growth opportunities across specialty nodes and new nodes ramping across foundry, logic, NAND and DRAM are expected to have benefited AMAT in the to-be-reported quarter. Inventory reductions across memory and demand elasticity in NAND are likely to have acted as other tailwinds.
Applied Materials is anticipated to have witnessed solid customer momentum across automotive and advanced packaging, owing to rising foundry logic spending.
All these factors are expected to have driven sales in the Semiconductor Systems Group segment in the to-be-reported quarter. For first-quarter fiscal 2023, the company’s projection for sales in the segment stands at $5.15 billion.
The growing adoption of IoT, AI and Big Data is expected to have contributed to the performance in the quarter under review.
In the Applied Global Services ("AGS") segment, AMAT’s growing 200-millimeter business and solid momentum among long-term service agreements are likely to have driven segmental sales in the quarter under review. For first-quarter fiscal 2023, Applied Materials’ projection for AGS sales stands at $1.33 billion.
However, Applied Materials is likely to have continued suffering from sluggishness in its Display and Adjacent Markets segment in the quarter under review. For first-quarter fiscal 2023, AMAT’s projection for this segment’s sales is $170 million.
Uncertainties related to the COVID-19 pandemic and geo-political tensions are likely to have induced headwinds for AMAT in the to-be-reported quarter.
What Our Model Says
Our proven model conclusively predicts 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 +0.42% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks that you may consider, as our model shows that these also have the right combination of elements to beat on earnings this season.
Grid Dynamics (GDYN - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Grid Dynamics is scheduled to release its fourth-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for GDYN’s earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure.
Endava (DAVA - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #2 at present.
Endava is set to report its second-quarter fiscal 2023 results on Feb 14. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.
DraftKings (DKNG - Free Report) has an Earnings ESP of +8.35% and a Zacks Rank #3 at present.
DraftKings is scheduled to release its fourth-quarter 2022 results on Feb 16. The Zacks Consensus Estimate for DKNG’s loss is pegged at 63 cents per share. The company reported a loss of 80 cents per share in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.