The upcoming report from Applied Materials (AMAT) is expected to reveal quarterly earnings of $2.34 per share, indicating an increase of 10.4% compared to the year-ago period. Analysts forecast revenues of $7.2 billion, representing an increase of 6.2% year over year.
The current level reflects a downward revision of 0.5% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some Applied Materials metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts predict that the 'Net Sales- Applied Global Services' will reach $1.56 billion. The estimate indicates a change of -1.6% from the prior-year quarter.
It is projected by analysts that the 'Net Sales- Semiconductor Systems' will reach $5.39 billion. The estimate indicates a change of +9.4% from the prior-year quarter.
Analysts' assessment points toward 'Net Sales- Display and Adjacent Markets' reaching $250.19 million. The estimate indicates a year-over-year change of -0.3%.
The combined assessment of analysts suggests that 'Net Sales- Corporate and Other' will likely reach $14.87 million. The estimate suggests a change of -35.4% year over year.
View all Key Company Metrics for Applied Materials here>>>
Over the past month, shares of Applied Materials have returned -6.6% versus the Zacks S&P 500 composite's +2.7% change. Currently, AMAT carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Applied Materials, Inc. (AMAT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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