Earnings and Growth Analysis : Applied Materials (NASDAQ:AMAT)

Earnings results for Applied Materials (NASDAQ:AMAT)

Applied Materials, Inc. is expected* to report earnings on 08/19/2021 after market close. The report will be for the fiscal Quarter ending Jul 2021. According to Zacks Investment Research, based on 8 analysts’ forecasts, the consensus EPS forecast for the quarter is $1.76. The reported EPS for the same quarter last year was $1.06.

Applied Materials last issued its quarterly earnings results on May 19th, 2021. The manufacturing equipment provider reported $1.63 earnings per share for the quarter, beating analysts’ consensus estimates of $1.51 by $0.12. The business earned $5.58 billion during the quarter, compared to analyst estimates of $5.40 billion. Its revenue for the quarter was up 41.1% on a year-over-year basis. Applied Materials has generated $4.17 earnings per share over the last year ($4.79 diluted earnings per share) and currently has a price-to-earnings ratio of 26.6. Earnings for Applied Materials are expected to grow by 12.06% in the coming year, from $6.55 to $7.34 per share. Applied Materials has confirmed that its next quarterly earnings report will be published on Thursday, August 19th, 2021. Applied Materials will be holding an earnings conference call on Thursday, August 19th at 4:30 PM Eastern. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Applied Materials (NASDAQ:AMAT)

22 Wall Street analysts have issued ratings and price targets for Applied Materials in the last 12 months. Their average twelve-month price target is $153.96, predicting that the stock has a possible upside of 20.88%. The high price target for AMAT is $195.00 and the low price target for AMAT is $110.00. There are currently 2 hold ratings and 20 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Applied Materials has received a consensus rating of Buy. The company’s average rating score is 2.91, and is based on 20 buy ratings, 2 hold ratings, and no sell ratings. According to analysts’ consensus price target of $153.96, Applied Materials has a forecasted upside of 20.9% from its current price of $127.37. Applied Materials has been the subject of 5 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Applied Materials (NASDAQ:AMAT)

Applied Materials has a dividend yield of 0.75%, which is in the bottom 25% of all stocks that pay dividends. Applied Materials has only been increasing its dividend for 3 years. The dividend payout ratio of Applied Materials is 23.02%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Applied Materials will have a dividend payout ratio of 13.08% next year. This indicates that Applied Materials will be able to sustain or increase its dividend.

Insiders buying/selling: Applied Materials (NASDAQ:AMAT)

In the past three months, Applied Materials insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $43,984,125.00 in company stock. Only 0.37% of the stock of Applied Materials is held by insiders. 74.75% of the stock of Applied Materials is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Applied Materials (NASDAQ:AMAT

Earnings for Applied Materials are expected to grow by 12.06% in the coming year, from $6.55 to $7.34 per share. The P/E ratio of Applied Materials is 26.59, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 18.80. The P/E ratio of Applied Materials is 26.59, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 51.04. Applied Materials has a PEG Ratio of 1.10. PEG Ratios above 1 indicate that a company could be overvalued. Applied Materials has a P/B Ratio of 11.00. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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