Applied Materials (NASDAQ:AMAT) Updates Q3 Earnings Guidance

Applied Materials (NASDAQ:AMATGet Rating) issued an update on its third quarter earnings guidance on Thursday morning. The company provided earnings per share guidance of $1.59-1.95 for the period, compared to the consensus earnings per share estimate of $2.04. The company issued revenue guidance of $5.85-6.65 billion, compared to the consensus revenue estimate of $6.68 billion.Applied Materials also updated its Q3 2022 guidance to $1.59-$1.95 EPS.

Shares of NASDAQ:AMAT opened at $106.46 on Friday. The company’s 50-day moving average is $119.87 and its 200 day moving average is $136.29. The company has a debt-to-equity ratio of 0.46, a quick ratio of 1.78 and a current ratio of 2.51. The company has a market capitalization of $94.05 billion, a P/E ratio of 14.19, a price-to-earnings-growth ratio of 1.37 and a beta of 1.44. Applied Materials has a fifty-two week low of $101.33 and a fifty-two week high of $167.06.

Applied Materials (NASDAQ:AMATGet Rating) last issued its quarterly earnings results on Thursday, May 19th. The manufacturing equipment provider reported $1.85 earnings per share for the quarter, missing analysts’ consensus estimates of $1.90 by ($0.05). The company had revenue of $6.25 billion during the quarter, compared to analysts’ expectations of $6.35 billion. Applied Materials had a return on equity of 56.59% and a net margin of 27.20%. Applied Materials’s quarterly revenue was up 11.9% compared to the same quarter last year. During the same period last year, the firm posted $1.63 earnings per share. As a group, research analysts predict that Applied Materials will post 8.02 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Thursday, June 16th. Investors of record on Thursday, May 26th will be issued a $0.26 dividend. This is an increase from Applied Materials’s previous quarterly dividend of $0.24. This represents a $1.04 dividend on an annualized basis and a dividend yield of 0.98%. The ex-dividend date is Wednesday, May 25th. Applied Materials’s payout ratio is 12.80%.

Applied Materials declared that its Board of Directors has authorized a share buyback program on Friday, March 11th that authorizes the company to repurchase $6.00 billion in outstanding shares. This repurchase authorization authorizes the manufacturing equipment provider to purchase up to 5.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

AMAT has been the topic of several recent research reports. Citigroup upped their price objective on shares of Applied Materials from $178.00 to $180.00 in a report on Thursday, February 17th. Stifel Nicolaus upped their price objective on shares of Applied Materials from $190.00 to $197.00 in a report on Thursday, April 7th. KeyCorp initiated coverage on shares of Applied Materials in a report on Tuesday, January 25th. They set a sector weight rating on the stock. Mizuho dropped their price objective on shares of Applied Materials from $180.00 to $160.00 and set a buy rating on the stock in a report on Friday. Finally, Cowen dropped their price objective on shares of Applied Materials from $190.00 to $160.00 and set an outperform rating on the stock in a report on Friday. Eight equities research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of Buy and a consensus target price of $156.62.

A number of large investors have recently modified their holdings of the stock. EP Wealth Advisors LLC raised its position in Applied Materials by 13.7% in the 1st quarter. EP Wealth Advisors LLC now owns 5,261 shares of the manufacturing equipment provider’s stock worth $693,000 after purchasing an additional 632 shares during the period. Range Financial Group LLC purchased a new position in Applied Materials in the 1st quarter worth $210,000. Walleye Capital LLC purchased a new position in Applied Materials in the 1st quarter worth $780,000. Willis Investment Counsel raised its position in Applied Materials by 6.6% in the 1st quarter. Willis Investment Counsel now owns 100,063 shares of the manufacturing equipment provider’s stock worth $13,188,000 after purchasing an additional 6,156 shares during the period. Finally, Continuum Advisory LLC raised its position in Applied Materials by 79.9% in the 1st quarter. Continuum Advisory LLC now owns 9,613 shares of the manufacturing equipment provider’s stock worth $1,061,000 after purchasing an additional 4,269 shares during the period. Institutional investors own 77.90% of the company’s stock.

About Applied Materials (Get Rating)

Applied Materials, Inc provides manufacturing equipment, services, and software to the semiconductor, display, and related industries. It operates through three segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets. The Semiconductor Systems segment develops, manufactures, and sells various manufacturing equipment that is used to fabricate semiconductor chips or integrated circuits.

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Earnings History and Estimates for Applied Materials (NASDAQ:AMAT)

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