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What's in Store for Applied Materials (AMAT) in Q4 Earnings?
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Applied Materials, Inc. (AMAT - Free Report) is set to report fourth-quarter fiscal 2023 results on Nov 16.
For the fiscal fourth quarter, AMAT expects net sales of $6.51 billion (+/-$400 million). The Zacks Consensus Estimate for revenues is pegged at $6.52 billion, suggesting a decline of 3.3% from the year-ago fiscal quarter’s reading.
Applied Materials projects non-GAAP earnings of $1.82-$2.18 per share. The Zacks Consensus Estimate for earnings is pinned at $1.98 per share, indicating a decline of 2.5% from the year-ago fiscal quarter’s figure.
AMAT’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 10.43%.
Applied Materials’ portfolio strength, expanding position in memory and increasing new design wins are likely to have driven its performance in the fiscal fourth quarter.
Strengthening the IoT, Communications, Auto, Power and Sensors (“ICAPS”) portfolio is expected to have benefited the company’s Semiconductor Systems segment in the quarter under review. Growth opportunities across specialty nodes and new nodes ramping across foundry, logic, NAND and DRAM might have been a positive.
However, weakness in leading-edge foundry logic and NAND is likely to have negatively impacted the segment’s performance.
For fourth-quarter fiscal 2023, the company’s sales projection for Semiconductor Systems is pegged at $4.75 billion. The Zacks Consensus Estimate for the same is pinned at $4.752 billion, indicating a decline of 5.7% from the year-ago quarter.
In the Applied Global Services (“AGS”) segment, AMAT’s growing 200-millimeter business and solid momentum subscription business are likely to have driven segmental sales in the quarter under review.
For fourth-quarter fiscal 2023, Applied Materials’ projection for AGS sales is pegged at $1.42 billion. The Zacks Consensus Estimate for the same is pinned at $1.42 billion, flat year over year.
Coming to the Display and Adjacent Markets segment, AMAT’s projection for this segment’s fourth-quarter fiscal 2023 sales is pegged at $290 million. The Zacks Consensus Estimate for the same is pinned at $290 million, indicating a rise of 15.5% from the year-ago quarter.
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.
Applied Materials has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.86% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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.
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What's in Store for Applied Materials (AMAT) in Q4 Earnings?
Applied Materials, Inc. (AMAT - Free Report) is set to report fourth-quarter fiscal 2023 results on Nov 16.
For the fiscal fourth quarter, AMAT expects net sales of $6.51 billion (+/-$400 million). The Zacks Consensus Estimate for revenues is pegged at $6.52 billion, suggesting a decline of 3.3% from the year-ago fiscal quarter’s reading.
Applied Materials projects non-GAAP earnings of $1.82-$2.18 per share. The Zacks Consensus Estimate for earnings is pinned at $1.98 per share, indicating a decline of 2.5% from the year-ago fiscal quarter’s figure.
AMAT’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average earnings surprise being 10.43%.
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 new design wins are likely to have driven its performance in the fiscal fourth quarter.
Strengthening the IoT, Communications, Auto, Power and Sensors (“ICAPS”) portfolio is expected to have benefited the company’s Semiconductor Systems segment in the quarter under review. Growth opportunities across specialty nodes and new nodes ramping across foundry, logic, NAND and DRAM might have been a positive.
However, weakness in leading-edge foundry logic and NAND is likely to have negatively impacted the segment’s performance.
For fourth-quarter fiscal 2023, the company’s sales projection for Semiconductor Systems is pegged at $4.75 billion. The Zacks Consensus Estimate for the same is pinned at $4.752 billion, indicating a decline of 5.7% from the year-ago quarter.
In the Applied Global Services (“AGS”) segment, AMAT’s growing 200-millimeter business and solid momentum subscription business are likely to have driven segmental sales in the quarter under review.
For fourth-quarter fiscal 2023, Applied Materials’ projection for AGS sales is pegged at $1.42 billion. The Zacks Consensus Estimate for the same is pinned at $1.42 billion, flat year over year.
Coming to the Display and Adjacent Markets segment, AMAT’s projection for this segment’s fourth-quarter fiscal 2023 sales is pegged at $290 million. The Zacks Consensus Estimate for the same is pinned at $290 million, indicating a rise of 15.5% from the year-ago quarter.
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.
Applied Materials has a Zacks Rank #4 (Sell) and an Earnings ESP of +0.86% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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.
Costco Wholesale (COST - Free Report) has an Earnings ESP of +4.26% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco is set to announce its first-quarter fiscal 2024 results on Dec 14. COST shares have gained 29.6% year to date.
Synopsys (SNPS - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #2.
Synopsys is set to announce its fourth-quarter fiscal 2023 results on Nov 29. SNPS shares have declined 24.9% year to date.
Snowflake (SNOW - Free Report) has an Earnings ESP of +67.33% and a Zacks Rank #2.
Snowflake is set to announce its third-quarter fiscal 2024 results on Nov 29. SNOW shares have gained 86% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.