Applied Materials Inc. (NASDAQ: AMAT) has confirmed the earnings date for Q4 2021 results on November 18, 2021.
What to look for
Applied Materials is among the largest semiconductor manufacturers. The company will continue consolidating market share and surpassing industry growth as a firm that can serve each step of the semiconductor production process. Currently, the semiconductor sector is expanding with demand for more memory, compute and chips used in various devices likely to boost earnings. Equally, Applied Materials will enjoy tailwinds such as 5g and AI/ML that are at the beginning stages for use cases such as autonomous cars and industrial IoT.
Earnings: Stockearning’s Estimated EPS is expected to beat EPS for the past quarter. The company is on a nice streak of topping earnings estimates in the past two quarters. In the last two quarters, the company delivered an average earnings surprise of 7.95%. In addition, historic EPS performance shows that the company has topped estimates in eleven (91%) of the last 12 quarters missing only once.
Revenue: For the third quarter ended August 1, 2021, the company reported revenue of $6.2 billion with cash from operations being $1.69 billion and shareholders returning $1.72 billion, including share repurchases of $1.5 billion and dividends of $219 billion. The company's solid performance is a result of digital transformation and secular demand for semiconductors.
Stock Movement: Since the last earnings release, Applied Materials shares have gained 5.8%. Following the Earnings release, Applied Materials shares have been UP 27 times out of the last 47 quarters. So, the historical price reaction suggests a 57% probability of the share price going UP once Applied Materials releases Q4 2021 earnings. According to the Stockearning algorithm, the predicted first-day move is 3%, while the predicted move on the seventh day is 4%.
What analysts are saying
Piper Sandler analyst Westin Twigg commenced coverage of Applied Material with a "Hold" rating and a target price of $130. The analysts believe that the company will benefit from a multiyear expansion in demand for semiconductors and computing. Still, a possible 2023 digestion period might limit share upside over the coming year. Nevertheless, Twig gaffed that shareholder returns will remain high and expects the company to achieve its 2024 target model.
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