Applied Materials Q3 2024 Earnings Preview

Company Overview

Applied Materials (AMAT) is a leading manufacturer of semiconductor manufacturing equipment. The company's products are used to create the chips that power everything from smartphones to data centers.

AMAT is one of the largest companies in the semiconductor equipment industry, with a market capitalization of over $100 billion.

Q3 2024 Earnings Preview

AMAT is scheduled to report its Q3 2024 earnings on August 15, 2024.

Analysts are expecting the company to report revenue of $6.78 billion and EPS of $1.65.

These estimates are based on the company's strong performance in recent quarters. In Q2 2024, AMAT reported revenue of $6.25 billion and EPS of $1.50, both of which beat analysts' expectations.

Key Metrics to Watch

There are a few key metrics that investors will be watching in AMAT's Q3 2024 earnings report:

• Revenue: Analysts will be looking for AMAT to report revenue of $6.78 billion, in line with the consensus estimate.
• EPS: Analysts will be looking for AMAT to report EPS of $1.65, also in line with the consensus estimate.
• Gross margin: Analysts will be looking for AMAT to report a gross margin of around 45%, in line with the company's historical average.
• Operating margin: Analysts will be looking for AMAT to report an operating margin of around 25%, in line with the company's historical average.
• Net income: Analysts will be looking for AMAT to report net income of around $1.5 billion, in line with the consensus estimate.

Outlook

AMAT is expected to continue to perform well in the coming quarters.

The company is benefiting from the strong demand for semiconductors, which is being driven by the growth of cloud computing, artificial intelligence, and other emerging technologies.

AMAT is also expected to benefit from the CHIPS Act, which was passed by Congress in August 2022. The CHIPS Act provides $52 billion in funding for the semiconductor industry, which is expected to boost demand for AMAT's products.