Applied Materials (NASDAQ:AMAT) Updates Q1 Earnings Guidance

Applied Materials (NASDAQ:AMAT) issued an update on its first quarter earnings guidance on Thursday morning. The company provided earnings per share guidance of $1.72-2.08 for the period, compared to the consensus earnings per share estimate of $1.84. The company issued revenue guidance of $6.07-6.87 billion, compared to the consensus revenue estimate of $6.38 billion. Applied Materials also updated its Q1 2024 guidance to $1.72-$2.08 EPS.

Applied Materials Trading Down 0.4 %

Applied Materials stock opened at $154.81 on Friday. Applied Materials has a 1 year low of $93.68 and a 1 year high of $157.76. The firm’s 50-day moving average is $140.11 and its 200-day moving average is $138.70. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.59 and a current ratio of 2.30. The company has a market cap of $129.97 billion, a P/E ratio of 20.42, a PEG ratio of 3.80 and a beta of 1.59.

Applied Materials (NASDAQ:AMAT) last issued its earnings results on Thursday, November 16th. The manufacturing equipment provider reported $2.12 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.98 by $0.14. Applied Materials had a net margin of 24.27% and a return on equity of 49.29%. The firm had revenue of $6.72 billion for the quarter, compared to analysts’ expectations of $6.52 billion. During the same quarter last year, the company posted $2.03 earnings per share. Applied Materials’s revenue was up 3.8% on a year-over-year basis. On average, equities analysts expect that Applied Materials will post 7.9 earnings per share for the current year.

Applied Materials Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 14th. Investors of record on Friday, November 24th will be given a dividend of $0.32 per share. The ex-dividend date of this dividend is Wednesday, November 22nd. This represents a $1.28 dividend on an annualized basis and a yield of 0.83%. Applied Materials’s dividend payout ratio is currently 16.89%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on AMAT. Bank of America raised their target price on Applied Materials from $165.00 to $175.00 in a research note on Friday, August 18th. JPMorgan Chase & Co. boosted their target price on shares of Applied Materials from $145.00 to $165.00 and gave the company an overweight rating in a research note on Friday, August 18th. Craig Hallum raised their price target on shares of Applied Materials from $139.00 to $160.00 and gave the company a buy rating in a research note on Friday, August 18th. Mizuho reiterated a buy rating and set a $158.00 price objective on shares of Applied Materials in a research report on Friday, September 15th. Finally, The Goldman Sachs Group raised their target price on Applied Materials from $135.00 to $155.00 and gave the company a buy rating in a research report on Monday, August 21st. One research analyst has rated the stock with a sell rating, six have issued a hold rating and twenty-four have issued a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of Moderate Buy and an average price target of $155.89.

Insider Activity

In related news, CFO Brice Hill sold 1,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 30th. The shares were sold at an average price of $150.04, for a total value of $150,040.00. Following the completion of the transaction, the chief financial officer now owns 106,023 shares of the company’s stock, valued at approximately $15,907,690.92. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.25% of the stock is owned by company insiders.

Institutional Trading of Applied Materials

Several institutional investors have recently made changes to their positions in the stock. Financial Freedom LLC purchased a new stake in Applied Materials in the 4th quarter worth approximately $25,000. Quarry LP purchased a new stake in shares of Applied Materials during the first quarter worth $40,000. Chilton Capital Management LLC acquired a new stake in Applied Materials during the first quarter valued at $43,000. Tyler Stone Wealth Management purchased a new position in Applied Materials in the second quarter valued at about $59,000. Finally, KB Financial Partners LLC acquired a new position in Applied Materials in the 1st quarter worth about $54,000. 77.24% of the stock is currently owned by institutional investors and hedge funds.

About Applied Materials

Applied Materials, Inc engages in the provision of 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.