Wall Street analysts expect Applied Materials (AMAT) to post quarterly earnings of $2.19 per share in its upcoming report, which indicates a year-over-year decline of 8%. Revenues are expected to be $6.89 billion, down 3.9% from the year-ago quarter.
The consensus EPS estimate for the quarter has undergone an upward revision of 0.8% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Applied Materials metrics that Wall Street analysts commonly model and monitor.
Analysts predict that the 'Net Revenue- Applied Global Services' will reach $1.56 billion. The estimate points to a change of -1.8% from the year-ago quarter.
Analysts forecast 'Net Revenue- Semiconductor Systems' to reach $4.97 billion. The estimate suggests a change of -7.3% year over year.
According to the collective judgment of analysts, 'Net Revenue- Corporate and Other' should come in at $305.24 million. The estimate indicates a change of +825% from the prior-year quarter.
The consensus among analysts is that 'Geographic Net Sales- United States' will reach $684.78 million. The estimate indicates a year-over-year change of -25.3%.
Analysts expect 'Geographic Net Sales- Europe' to come in at $256.38 million. The estimate indicates a year-over-year change of -22.3%.
Based on the collective assessment of analysts, 'Geographic Net Sales- Japan' should arrive at $518.68 million. The estimate points to a change of -4% from the year-ago quarter.
The average prediction of analysts places 'Geographic Net Sales- China' at $1.97 billion. The estimate indicates a year-over-year change of -12%.
The consensus estimate for 'Geographic Net Sales- Southeast Asia' stands at $271.34 million. The estimate indicates a change of -5.1% from the prior-year quarter.
The combined assessment of analysts suggests that 'Geographic Net Sales- Taiwan' will likely reach $1.81 billion. The estimate indicates a year-over-year change of +53%.
It is projected by analysts that the 'Geographic Net Sales- Korea' will reach $1.41 billion. The estimate suggests a change of -15.3% year over year.
Analysts' assessment points toward 'Operating Income- Applied Global Services' reaching $427.87 million. Compared to the present estimate, the company reported $447.00 million in the same quarter last year.
The collective assessment of analysts points to an estimated 'Operating Income- Semiconductor Systems' of $1.81 billion. The estimate compares to the year-ago value of $1.99 billion.
View all Key Company Metrics for Applied Materials here>>>
Over the past month, Applied Materials shares have recorded returns of +7.1% versus the Zacks S&P 500 composite's -0.2% change. Based on its Zacks Rank #2 (Buy), AMAT will likely outperform the overall market in the upcoming period. 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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