Latest news with #BriceHill
Yahoo
4 days ago
- Business
- Yahoo
Applied Materials Stock Tanks On Weak Outlook, China Headwinds
Applied Materials Inc. (NASDAQ:AMAT) stock is plunging on Friday after the company reported financial results for the third quarter after market close on Thursday. The chip equipment manufacturer reported third-quarter revenue of $7.3 billion, beating analyst estimates of $7.22 billion, with adjusted earnings of $2.48 per share, beating analyst estimates of $2.36 per share. Outlook 'We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and non-linear demand from leading-edge customers given market concentration and fab timing,' said Brice Hill, senior vice president and CFO of Applied Materials.'We are navigating and adapting to the near-term uncertainties by leveraging our robust supply chain, global manufacturing footprint, and deep customer relationships.' Applied Materials expects fourth-quarter revenue of $6.7 billion, plus or minus $500 million, versus estimates of $7.33 billion. The company expects fourth-quarter adjusted earnings to be between $1.91 and $2.31 per share, versus estimates of $2.39. Street Opinions Split Analyst sentiment on Applied Materials was mixed following the latest updates. UBS maintained a Neutral rating but trimmed its price target from $185 to $180, while Wells Fargo kept an Overweight stance, cutting its target from $215 to $205. View more earnings on AMAT Cantor Fitzgerald also maintained an Overweight rating, lowering its target from $220 to $200. Morgan Stanley held its Equal-Weight rating but nudged its target higher from $169 to $172. JPMorgan reiterated an Overweight view and lifted its target from $210 to $220. Stifel remained bullish with a Buy rating but reduced its target from $195 to $180, and Wolfe Research kept an Outperform rating while cutting its target from $230 to $200. Mizuho also maintained an Outperform view, trimming its target from $220 to $200. Evercore ISI reiterated an Outperform rating and kept its $209 target unchanged. Meanwhile, Bank of America Securities downgraded the stock from Buy to Neutral and reduced its target from $190 to $180. Price Action: AMAT stock is trading lower by 12.06% to $165.63 at last check Friday. Read Next:Image via Shutterstock Latest Ratings for AMAT Date Firm Action From To Feb 2022 UBS Maintains Neutral Feb 2022 Needham Maintains Buy Feb 2022 Piper Sandler Maintains Neutral View More Analyst Ratings for AMAT View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLIED MAT (AMAT): Free Stock Analysis Report This article Applied Materials Stock Tanks On Weak Outlook, China Headwinds originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
04-07-2025
- Business
- Yahoo
5 Must-Read Analyst Questions From Applied Materials's Q1 Earnings Call
Applied Materials met Wall Street's expectations in the first quarter of 2025, but the market reacted negatively, reflecting concerns that surfaced during the earnings call. Management highlighted strong demand for AI-enabling semiconductors and robust performance in leading-edge foundry and DRAM segments as primary growth drivers. CEO Gary Dickerson noted, 'Our customers remain focused on winning the race to be first-to-market with transformative new technologies,' yet acknowledged that trade restrictions and a weaker 200-millimeter equipment market, especially in China, affected the company's service segment. CFO Brice Hill cited the 'rapidly evolving economic and trade policy environment' as a challenge that the company continues to navigate. Is now the time to buy AMAT? Find out in our full research report (it's free). Revenue: $7.1 billion vs analyst estimates of $7.13 billion (6.8% year-on-year growth, in line) Adjusted EPS: $2.39 vs analyst estimates of $2.31 (3.4% beat) Adjusted EBITDA: $2.28 billion vs analyst estimates of $2.24 billion (32.2% margin, 2% beat) Revenue Guidance for Q2 CY2025 is $7.2 billion at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $2.35 at the midpoint, above analyst estimates of $2.31 Operating Margin: 30.5%, up from 28.8% in the same quarter last year Inventory Days Outstanding: 142, up from 136 in the previous quarter Market Capitalization: $153.3 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Stacy Rasgon (Bernstein Research) asked about ongoing weakness in the AGS segment, especially due to China trade restrictions. CFO Brice Hill explained that core services will continue to grow at a low double-digit rate, but 200-millimeter equipment sales remain subdued. Vivek Arya (Bank of America Securities) questioned the impact of mature node (ICAPS) exposure on growth. Hill clarified that ICAPS markets are expected to grow mid-to-high single digits, with China's 28-nanometer investments seen as an opportunity for Applied Materials. C.J. Muse (Cantor Fitzgerald) probed gross margin sustainability amid tariff pressures. Hill stated that flexible manufacturing, value-based pricing, and cost management should hold margins in the low 48% range, with ongoing improvements anticipated. Melissa Weathers (Deutsche Bank) asked about DRAM spending trends and the balance between cyclical lows and AI-driven growth. CEO Gary Dickerson emphasized strong DRAM demand led by high-bandwidth memory and the company's market share gains in this segment. Krish Sankar (TD Cowen) explored competitive dynamics in process tools and the rationale behind the BESI investment. Dickerson highlighted Applied's positioning at key technology inflections and deep customer collaborations as differentiators. In the coming quarters, the StockStory team will be monitoring (1) the pace of adoption for advanced AI and memory products, (2) the impact of evolving trade restrictions and tariffs on both equipment and services revenue, and (3) the ability of Applied Materials to sustain margin improvements through manufacturing efficiencies and cost controls. Progress on these fronts will help determine whether recent investments translate into durable, profitable growth. Applied Materials currently trades at $190.86, up from $174.59 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
04-06-2025
- Business
- Yahoo
AMAT Q1 Earnings Call: Revenue Misses, Margins and AI-Driven Demand Shape Outlook
Semiconductor machinery manufacturer Applied Materials (NASDAQ:AMAT) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 6.8% year on year to $7.1 billion. Its non-GAAP EPS of $2.39 per share was 3.4% above analysts' consensus estimates. Is now the time to buy AMAT? Find out in our full research report (it's free). Revenue: $7.1 billion (6.8% year-on-year growth) Adjusted EPS: $2.39 vs analyst estimates of $2.31 (3.4% beat) Adjusted Operating Income: $2.18 billion vs analyst estimates of $2.12 billion (30.7% margin, 2.6% beat) Revenue Guidance for Q2 CY2025 is $7.2 billion at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $2.35 at the midpoint, above analyst estimates of $2.31 Operating Margin: 30.5%, up from 28.8% in the same quarter last year Inventory Days Outstanding: 142, up from 136 in the previous quarter Market Capitalization: $129.8 billion Applied Materials' first quarter performance was shaped by increased investments in leading-edge foundry and logic, as well as continued demand for semiconductors used in artificial intelligence (AI) applications. CEO Gary Dickerson highlighted the company's focus on enabling next-generation technologies such as gate-all-around transistors and advanced DRAM, stating, 'We are very well-positioned at major technology inflections in fast-growing areas of the market.' Despite challenges from trade restrictions, especially in China, Applied Materials saw broad-based growth across business segments, with the Semiconductor Systems segment benefiting from customers' accelerated adoption of new chip architectures. The company also cited gains in its advanced etch and process diagnostics products as contributors to margin expansion. Looking ahead, Applied Materials' guidance is underpinned by anticipated acceleration in leading-edge foundry-logic and continued strength in DRAM and NAND upgrades, particularly those tied to AI data center investments. CFO Brice Hill explained, 'We expect the core [services] to grow at low double digits during the year, even with the impacts from lower China business due to trade restrictions.' Management emphasized the durability of demand for AI-enabling semiconductor technologies and highlighted ongoing investments in new product innovation and high-velocity co-innovation with customers. The company cautioned that macroeconomic volatility, tariffs, and evolving trade policies remain risks to its outlook, but maintained that its diversified manufacturing and supply chain footprint provide flexibility to navigate these challenges. Management pointed to robust demand for AI-related semiconductor technologies and highlighted recent product advances, while acknowledging near-term headwinds from China trade restrictions and segment-specific softness. AI and advanced logic demand: Growth was driven by strong customer investments in advanced logic and DRAM technologies, with particular emphasis on AI data center applications and high-bandwidth memory, which management expects to be major market drivers for the next several years. China trade restrictions' impact: The company experienced continued headwinds in China, especially in its services and 200-millimeter equipment business, due to expanded U.S. export controls. Management noted these restrictions led to weaker near-term performance for Applied Global Services (AGS) but expects core service revenue (excluding 200mm) to grow at low double digits through the year. Product innovation and adoption: New products, including the Sym3 Magnum etch system and Cold Field Emission eBeam technology, have seen rapid market adoption, supporting revenue growth and margin improvement. The Sym3 Magnum generated over $1.2 billion in revenue since its launch in February 2024. Margin improvement initiatives: Profitability benefited from favorable product mix, ongoing cost management, and value-based pricing strategies. Management believes recent cost improvements and better value capture will support sustainable margin expansion in future periods. Diversified manufacturing and supply chain: Applied Materials leveraged its global supply chain flexibility to mitigate the effects of tariffs and supply chain disruptions. The company's ability to shift production and duplicate sources globally has limited the near-term financial impact from changing trade policy and geopolitical risks. Applied Materials' forward outlook is shaped by accelerating AI-related demand, ongoing product innovation, and the company's ability to manage external risks such as tariffs and trade dynamics. AI-driven semiconductor investments: Management expects continued robust demand for advanced logic, DRAM, and packaging solutions supporting AI infrastructure, with leading-edge foundry-logic acceleration set to offset weakness in mature ICAPS segments. Investments by cloud service providers and leading chipmakers are projected to drive sustained growth in wafer fab equipment. Service segment growth and recurring revenue: The company anticipates core service revenues, excluding 200-millimeter equipment, will grow at a low double-digit rate, supported by an increasing share of subscription-based agreements and recurring business. However, trade restrictions in China are expected to limit growth in certain service and equipment categories in the near term. Margin resilience amid external pressures: Management highlighted ongoing margin expansion efforts through cost control, pricing discipline, and flexible manufacturing. While tariffs and macroeconomic volatility present ongoing risks, the company expects operating margins to remain in the low-48% range, with further improvements possible through operational initiatives. In the coming quarters, the StockStory team will focus on (1) the pace of adoption for new AI-related semiconductor technologies and the resulting impact on leading-edge foundry and logic revenue, (2) whether service segment growth can maintain momentum despite ongoing China trade restrictions and 200mm equipment headwinds, and (3) progress toward sustainable margin expansion through cost management and product mix. The continued ramp of advanced packaging and further penetration of subscription-based services will also be key indicators of execution. Applied Materials currently trades at a forward P/E ratio of 17.2×. Should you double down or take your chips? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Globe and Mail
22-05-2025
- Business
- Globe and Mail
Applied Materials to Participate in Upcoming Investor Conferences
SANTA CLARA, Calif., May 22, 2025 (GLOBE NEWSWIRE) -- Applied Materials, Inc. today announced that members of management will participate in fireside chats at upcoming investor conferences. Gary Dickerson, President and CEO, will participate at the Bernstein Strategic Decisions Conference on Thursday, May 29 beginning at 7:00 a.m. PT / 10:00 a.m. ET. Brice Hill, Senior Vice President and CFO, will participate at the BofA Securities Global Technology Conference on Wednesday, June 4 beginning at 10:40 a.m. PT / 1:40 p.m. ET. A live audio webcast of each session will be available on the Applied Materials website at: with a replay available the same day. About Applied Materials Applied Materials, Inc. (Nasdaq: AMAT) is the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world. Our expertise in modifying materials at atomic levels and on an industrial scale enables customers to transform possibilities into reality. At Applied Materials, our innovations make possible a better future. Learn more at
Yahoo
16-05-2025
- Business
- Yahoo
Applied Materials Shares Tumble as Q2 Record Margins Fail to Offset China Woes
Shares of Applied Materials (NASDAQ:AMAT) slid about 5% in pre-market trading on Friday after the company beat second-quarter forecasts but flagged widening guidance and China risks. The California-based equipment supplier posted earnings of $2.39 per share, beating analysts' estimates by eight cents. Revenue rose to $7.10 billion, up about 7% year-on-year but just shy of the $7.13 billion consensus. Gross profit margin climbed to 49.2%, the highest since 2000. CFO Brice Hill attributed the improvement to a favorable mix of our products and business segments, while reiterating confidence in the company's supply chain and operational flexibility. Applied Materials returned $2 billion to shareholders during the quarter through dividends and repurchases, reducing its share count by roughly 1.4%. It also authorized an additional $10 billion for future buybacks, bringing total remaining authorizations to $15.9 billion. However, management widened its Q3 revenue outlook range by $100 million to account for ongoing macroeconomic and trade-related volatility. CEO Gary Dickerson also noted weaker sales in power electronics tools linked to the 200 mm wafer market, citing persistent export restrictions impacting demand from China. Based on the one year price targets offered by 32 analysts, the average target price for Applied Materials Inc is $201.02 with a high estimate of $245.00 and a low estimate of $152.00. The average target implies a upside of +15.03% from the current price of $174.75. Based on GuruFocus estimates, the estimated GF Value for Applied Materials Inc in one year is $168.87, suggesting a downside of -3.36% from the current price of $174.75. For deeper insights, visit the AMAT Forecast page. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
