Applied Materials (AMAT), a provider of manufacturing equipment, services, and software solutions to the semiconductor industry, will release its fiscal first-quarter 2022 financial results after the market closes today.
The company previously reported decent fourth-quarter 2021 results, with both revenues and earnings improving from the year-ago quarter. Adjusted profits per share increased by 55% year-over-year to $1.94 per share, while net sales increased 31% year-over-year to $6.12 billion.
The company should continue to report strong top and bottom-line numbers in the first quarter due to the ever-increasing demand for semiconductors.
AMAT stock has increased by over 36% in the past year. A strong first-quarter print might enhance the company’s stock price even further.
Q1 Expectations
Applied Materials is expected to report adjusted earnings of $1.86 per share in the first quarter, according to the experts. The statistics indicate a 33.8%.rise on a year-over-year basis.
Analysts’ Views
Susquehanna Securities analyst Mehdi Hosseini expects Applied Materials’ top-line performance to come in line with the mid-point of the company’s expectations. For the first quarter, Applied forecast revenues of $6.16 billion (+/-$250 million).
According to Hosseini, Q1 revenues will likely be driven by strength in the company’s Semiconductor Systems Group (SSG) segment. The analyst forecasts revenues of $6,216 million and earnings per share of $1.89 for the upcoming first quarter.
However, due to persistent supply chain issues, Hosseini does not foresee encouraging guidance for the April quarter.
For the second quarter, he predicts revenues of $6,585 million and earnings per share of $2.02. Further, the analyst expects margins to remain flat to up sequentially in the April quarter.
As a result, the analyst maintained a Hold rating on the stock and a price target of $160.
Wall Street’s Take
On TipRanks, Applied Materials commands a Strong Buy consensus rating based on 15 Buys and 5 Holds. The average AMAT price forecast of $179.41 implies 28.3% upside potential from current levels.
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