Applied Materials (AMAT) Q2 Earnings: What To Expect

Semiconductor machinery manufacturer Applied Materials (NASDAQ:AMAT) will be announcing earnings results this Thursday after market hours. Here’s what to look for.

Applied Materials met analysts’ revenue expectations last quarter, reporting revenues of $7.1 billion, up 6.8% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but an increase in its inventory levels.

Is Applied Materials a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Applied Materials’s revenue to grow 6.5% year on year to $7.22 billion, in line with the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.36 per share.Applied Materials Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Applied Materials has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Applied Materials’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. IPG Photonics’s revenues decreased 2.7% year on year, beating analysts’ expectations by 9.4%, and Amkor reported revenues up 3.4%, topping estimates by 6.3%. IPG Photonics traded down 6.9% following the results while Amkor was up 18.1%.

Read our full analysis of IPG Photonics’s results here and Amkor’s results here.

Investors in the semiconductor manufacturing segment have had steady hands going into earnings, with share prices flat over the last month. Applied Materials is down 4.1% during the same time and is heading into earnings with an average analyst price target of $205.84 (compared to the current share price of $188.93).

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