AMAT Earnings Prediction
The chart below shows how AMAT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AMAT sees a -4.71% change in stock price 10 days leading up to the earnings, and a +1.23% change 10 days following the report. On the earnings day itself, the stock moves by +0.52%. This data can give you a slight idea of what to expect for the next quarter's release.
AMAT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
7.04B
4.79%
3.94%
Gross Margin
47.34%
0.42%
0.11%
Operating Margin
29.04%
-0.95%
1.36%
Net Margin
24.57%
-17.58%
-2.31%
EPS
2.08
-12.61%
1.46%
No Data Available
AMAT Earnings Analysis
Applied Materials Inc Corporation (AMAT.O) Earnings Conference Call
Positive
Record Revenue Achievement: Applied Materials delivered record revenue of $27.2 billion for fiscal 2024, up 2.5% year-over-year, with growth across all three business segments.
Record Gross Margin Increase: Non-GAAP gross margin was 47.6%, up 80 basis points year-over-year, marking the highest annual gross margin rate since fiscal 2000.
Operating Profit Growth: Non-GAAP operating profit grew 2.7% year-over-year, reflecting strong operational performance improvements across the company.
Net Sales Increase: For fiscal Q4, net sales were $7.05 billion, up nearly 5% year-over-year, driven by solid growth in Semiconductor Systems and Services.
Shareholder Returns Increase: The company distributed over $5 billion to shareholders via dividends and share repurchases, including $3.8 billion in share repurchases, up 75% from $2.2 billion in fiscal 2023.
Negative
China Revenue Decline: China revenue declined to 30% of total revenue, aligning with previous expectations and historical averages.
Gross Margin Performance: Non-GAAP gross margin was 47.5%, up slightly on both a year-over-year and quarter-over-quarter basis, but still lower than the previous target of 31%.
DRAM Sales Decline: DRAM sales declined 10% year-over-year, reflecting elevated purchases from China in Q4 of fiscal 2023.
NAND Sales Flat Year-over-Year: NAND sales were flat year-over-year, indicating a slowdown in demand in key markets such as automotive and industrial sectors.
Operating Expenses Management: Operating expenses were $1.28 billion, or 18.2% of revenue, which is roughly in line with expectations but indicates a need for continued cost management.
AMAT FAQs
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AMAT Earning Call Sentiment
Applied Materials, Inc. (AMAT) Q4 2024 Earnings Call Transcript
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AMAT.O
-6.52%Positive
The earnings call reflects a positive outlook with record revenue, strong financial performance, and optimistic guidance. The market expansion and leadership in DRAM, along with increased shareholder returns, further bolster the sentiment. However, concerns about China mix and unclear responses regarding administration changes and WFE spending introduce some uncertainties. Overall, the positive factors outweigh the negatives, suggesting a stock price increase.