Applied Materials beats Wall Street estimates in the fiscal first quarter

Applied Materials Inc. (NASDAQ: AMAT) published its earnings report for the fiscal first quarter on Thursday that beat Wall Street estimates. Chief Executive Gary Dickerson commented on the quarterly results and said:

“All the respective end-markets, NAND, DRAM, foundry-logic are strong. We think we’re in the very early innings, this is going to be a decade-plus investment cycle. Semiconductors are going to be on the key path of enabling some pretty major trends that play out around the world.”

In separate news from the U.S., travel-booking company Tripadvisor also reported its quarterly financial results on Thursday.

Applied Materials’ Q1 financial results versus analysts’ estimates

Applied Materials said that its net income in the first quarter came in at £810 million that translates to 87 pence per share. In the same quarter last year, its net income was capped at a lower £638.22 million or 68.69 pence per share.

On an adjusted basis, the chip-industry supplier earned 99 pence per share in Q1 versus the year-ago figure of 70.12 pence per share. Applied Materials valued its revenue in the recent quarter at £3.69 billion versus a lower £2.98 billion in the comparable quarter of last year.

According to FactSet, experts had forecast the company to post £3.56 billion of revenue in the first quarter. Their estimate for adjusted per-share earnings stood at a lower 92 pence per share. In the prior quarter (Q4), Applied Materials had noted £1.0 billion of net income.

Applied Materials’ guidance for the fiscal second quarter

For the fiscal second quarter, the Santa Clara-based company now forecasts its adjusted per-share earnings to fall in the range of 80 pence to £1.03. Applied Materials expects £3.71 billion to £4.0 billion of revenue in the ongoing quarter. Analysts, on the other hand, are calling for £3.55 billion of revenue and 92 pence of adjusted earnings per share for the U.S. company in Q2.

Applied Materials shares, which you can learn to buy shares online here, were reported about 4% up in after-hours trading on Thursday. The stock is now exchanging hands at £84.32 per share after recovering from a low of £27.20 per share in March 2020.

Applied Materials performed largely upbeat in the stock market last year with an annual gain of roughly 40%. At the time of writing, it has a market capitalisation of £74.48 billion and a price to earnings ratio of 28.93.