Applied Materials tops analysts’ estimates for earnings and revenue in fiscal Q4

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Nov 12, 2020
  • Applied Materials tops analysts’ estimates for earnings and revenue in fiscal Q4.
  • Shares of the company jumped close to 3% in extended trading on Thursday.
  • Applied now forecasts up to £1.01 of EPS and up to £3.93 billion of revenue in Q1.

Applied Materials Inc. (NASDAQ: AMAT) reported its financial results for the fiscal fourth quarter on Thursday that topped analysts’ estimates for earnings and revenue.

Shares of the company jumped close to 3% in after-hours trading on Thursday. On a year to date basis, Applied Materials is now 15% up in the stock market after recovering close to 80% since its low in March due to the Coronavirus pandemic. Interested in investing in the stock market online? Here’s a simple guide to get you started.

Applied Materials’ Q4 financial results versus analysts’ estimates

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Applied Materials said that its net income in the fourth quarter printed at £1.0 billion that translates to 94 pence per share. In the same quarter last year, it had reported a much lower £532.17 million of net income or 57.18 pence per share. In the prior quarter (Q3), the Santa Clara-based company had registered £641.64 million of net income.

On an adjusted basis, the company earned 95 pence per share in Q4 versus the year-ago figure of 61 pence per share. In terms of revenue, the American corporation posted £3.58 billion of revenue versus £2.86 billion in the comparable quarter of last year.

According to FactSet, experts had forecast Applied Materials to record £3.51 billion of revenue in the recent quarter. Their estimate for per-share earnings was capped at a lower 89 pence per share.

CEO Gary Dickerson commented on the earnings report on Thursday and said:

“Applied Materials closed fiscal 2020 with record quarterly performance as demand for our semiconductor systems and services remains very strong. Our future opportunities have never looked better and, as powerful technology trends take shape, we are uniquely positioned to accelerate our customers’ roadmaps and outperform our markets.”

Applied Materials’ guidance for the fiscal first quarter

For the fiscal first quarter, Applied Materials now forecasts its per-share earnings to fall in the range of 91 pence per share to £1.01 per share. Its estimate for Q1 revenue stands at £3.62 billion to £3.93 billion. Analysts, on the other hand, are calling for £3.44 billion of revenue in the first quarter and 85 pence of earnings per share.

Last month, Applied Materials partnered with BE Semiconductor Industries to accelerate chip integration technology for the semiconductor industry. At the time of writing, Applied Materials is valued at £48.60 billion and has a price to earnings ratio of 20.27.

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