Applied Materials Q3 Earnings: Beat Estimates, Tepid Growth Ahead

Key Highlights

• Applied Materials (AMAT) reported earnings per share (EPS) of $2.13, beating estimates.
• Revenue came in at $23.9 billion, also surpassing expectations.
• Guidance for the current quarter was slightly higher than analysts' forecasts.

While Applied Materials' earnings for the third quarter of fiscal 2024 exceeded expectations, analysts anticipate tepid EPS growth in the medium term.

Financial Performance

The company reported non-GAAP EPS of $2.13 per share, driven by strong demand for its semiconductor equipment.

Revenue surged 7% year-over-year to $23.9 billion, driven by growth in its semiconductor systems and services businesses.

Guidance

For the current quarter, Applied Materials guided for revenue between $6.75 billion and $7.15 billion, slightly above analysts' estimates.

After-Hours Trading

Despite the positive earnings report, shares of Applied Materials slipped in after-hours trading, indicating cautious investor sentiment.

Outlook

The semiconductor industry faces challenges, including ongoing supply chain disruptions and geopolitical tensions.

Analysts expect muted EPS growth for Applied Materials in the coming quarters due to these headwinds.

Analyst Commentary

Analysts remain optimistic about Applied Materials' long-term growth prospects, citing its strong market position and innovative technology.

However, they caution that the company's performance may be impacted by macroeconomic factors in the near term.