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 -5.09% change in stock price 10 days leading up to the earnings, and a -0.68% change 10 days following the report. On the earnings day itself, the stock moves by +0.76%. 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
7.17B
6.84%
1.72%
Gross Margin
48.79%
2.14%
3.06%
Operating Margin
30.35%
3.48%
4.51%
Net Margin
16.54%
-45.05%
-32.68%
EPS
1.45
-39.83%
-30.29%
No Data Available
AMAT Earnings Analysis
Applied Materials Inc Corporation (AMAT.O) Earnings Conference Call
Positive
Record Revenue Achievement: Applied Materials reported record revenues in Q1 2025, surpassing the previous high set last quarter, indicating strong financial performance.
Earnings Beat Expectations: The company beat earnings expectations with a reported EPS of $2.38, exceeding the anticipated $2.28, reflecting better profitability and share repurchases.
AI-Driven Semiconductor Growth: AI is identified as a major catalyst for innovation and growth, with global semiconductor sales expected to exceed $1 trillion by 2030, positioning Applied Materials favorably in the market.
Strategic Positioning in AI: The company is well-positioned at major device architecture inflections, particularly in leading-edge logic and advanced packaging, which are critical for energy-efficient AI.
Advanced Packaging Market Dominance: Applied Materials captured more than half of the advanced packaging market in 2024 and is on track to double revenues in this segment over the next several years.
Co-Innovation Progress and Strategies: The company has made significant progress in high-velocity co-innovation, launching new strategies and partnerships to accelerate technology development and market introduction.
Record Gross Margin Achievement: Non-GAAP gross margin reached 48.9%, the highest quarterly gross margin since fiscal year 2000, driven by a favorable mix and adoption of leading-edge technologies.
Service Revenue Growth: Applied Global Services (AGS) revenue grew 8% year over year, indicating healthy growth in services despite some declines in equipment sales.
Shareholder Value Distribution: The company distributed $1.6 billion to shareholders, including $1.3 billion in share repurchases, demonstrating strong cash flow management and commitment to returning value to shareholders.
Negative
Revenue Headwind Forecast: - The company anticipates a revenue headwind of approximately $400 million in fiscal 2025 due to expanded export controls, with nearly half of that impact expected in Q2.
Sales Decline in Equipment: - There is a noted decline in sales of 200-millimeter equipment within the Applied Global Services segment, which partially offset revenue growth.
China Revenue Contribution Decline: - The company expects China to contribute about five percentage points less to total revenue in Q2 compared to Q1, which is significantly below the normalized level of approximately 30%.
Decline in DRAM Sales: - DRAM sales are expected to decline due to tough year-over-year comparisons, as prior year sales to customers in China did not repeat.
ICAPS Investment Trends: - The ICAPS nodes segment is experiencing a more measured level of investment following strong spending in 2023 and 2024, indicating potential slowdowns in that area.
AMAT FAQs
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AMAT Earning Call Sentiment
Applied Materials, Inc. (NASDAQ:AMAT) Q1 2025 Earnings Call Transcript
AMAT.O
-7.04%Positive
The earnings call reveals positive aspects such as strong EPS growth, increased shareholder returns, and optimistic guidance for advanced technologies. However, concerns about trade restrictions, declining DRAM sales, and China's reduced market impact create uncertainties. Management's vague responses in the Q&A further add to investor apprehension. While the company's long-term growth outlook is solid, the mixed short-term signals and external pressures suggest a neutral stock price movement over the next two weeks.
