Applied Materials, Inc. ( AMAT Quick Quote AMAT - Free Report) is set to report second-quarter fiscal 2023 results on May 18. For the fiscal second quarter, AMAT expects net sales of $6.4 billion (+/-$400 million). The Zacks Consensus Estimate for revenues is pegged at $6.4 billion, suggesting growth of 2.4% from the year-ago fiscal quarter’s reading. Applied Materials projects non-GAAP earnings of $1.66-$2.02 per share. The Zacks Consensus Estimate for earnings is pegged at $1.84 per share, indicating a decline of 0.5% from the year-ago fiscal quarter’s reported figure. AMAT’s bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average earnings surprise being 7.52%. Factors to Consider
Applied Materials is likely to have persistently suffered supply-chain disruptions during the fiscal second quarter.
Further, a cybersecurity event announced by one of AMAT’s suppliers is expected to impact the upcoming results negatively. The company’s portfolio strength, expanding position in memory and increasing new design wins are likely to have driven its performance in the fiscal second 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 fiscal quarter. Inventory reductions across memory and demand elasticity in NAND are likely to have acted as other tailwinds. The company is anticipated to have witnessed solid customer momentum across automotive and advanced packaging, owing to rising foundry logic spending. The growing adoption of IoT, AI and Big Data is expected to have contributed to the company’s performance in the fiscal second quarter. Further, strengthening ICAPS portfolio is expected to have benefited the company in the quarter under review. However, AMAT is likely to have continued suffering from sluggishness in its Display and Adjacent Markets segment in the quarter under review. 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 at present. Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Autodesk ( ADSK Quick Quote ADSK - Free Report) has an Earnings ESP of +1.76% and a Zacks Rank #3 at present. You can see . the complete list of today’s Zacks #1 Rank stocks here ADSK is scheduled to release first-quarter 2024 results on May 25. The Zacks Consensus Estimate for ADSK’s earnings is pegged at $1.55 per share, suggesting a rise of 8.4% year over year. Agilent Technologies ( A Quick Quote A - Free Report) has an Earnings ESP of +0.40% and currently carries a Zacks Rank #2. Agilent Technologies is set to report second-quarter fiscal 2023 results on May 23. The Zacks Consensus Estimate for A’s earnings is pegged at $1.27 per share, implying a 12.4% increase from the prior-year quarter’s reported figure. Cisco Systems ( CSCO Quick Quote CSCO - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3 at present. CSCO is scheduled to report third-quarter fiscal 2023 results on May 17. The Zacks Consensus Estimate for CSCO’s earnings is pegged at 97 cents per share, suggesting an increase of 11.5% from the prior-year quarter’s reported figure. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.