FY2025 EPS Forecast for Applied Materials Cut by Analyst

Key Points

• B. Riley has reduced its FY2025 earnings per share estimate for Applied Materials from $9.55 to $9.35, while maintaining a "Buy" rating with a target price of $215.00.
• Applied Materials reported earnings of $2.48 per share for the latest quarter, exceeding consensus estimates and reflecting a 7.7% increase in revenue year-over-year.
• Several analysts have lowered their price targets for Applied Materials, with adjustments from Mizuho ($220 to $200) and Deutsche Bank ($200 to $170), indicating mixed sentiment among institutional investors.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Research analysts at B. Riley lowered their FY2025 earnings per share estimates for Applied Materials in a research note issued to investors on Friday, August 15th. B. Riley analyst C. Ellis now expects that the manufacturing equipment provider will post earnings per share of $9.35 for the year, down from their previous estimate of $9.55. B. Riley has a "Buy" rating and a $215.00 price objective on the stock. The consensus estimate for Applied Materials' current full-year earnings is $9.38 per share. B. Riley also issued estimates for Applied Materials' Q4 2026 earnings at $2.50 EPS.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 earnings per share for the quarter, beating analysts' consensus estimates of $2.36 by $0.12. Applied Materials had a return on equity of 41.31% and a net margin of 23.88%.The firm had revenue of $7.30 billion for the quarter, compared to analysts' expectations of $7.21 billion. During the same quarter last year, the firm earned $2.12 earnings per share. The firm's revenue for the quarter was up 7.7% compared to the same quarter last year. Applied Materials has set its Q4 2025 guidance at 1.910-2.310 EPS.

Several other research firms have also commented on AMAT. Summit Insights lowered Applied Materials from a "buy" rating to a "hold" rating in a research report on Friday. Rothschild & Co Redburn lowered Applied Materials from a "buy" rating to a "neutral" rating and set a $200.00 price objective on the stock. in a research report on Monday, July 7th. Wells Fargo & Company cut their price objective on Applied Materials from $215.00 to $205.00 and set an "overweight" rating on the stock in a research report on Friday. Morgan Stanley raised their price objective on Applied Materials from $169.00 to $172.00 and gave the company an "equal weight" rating in a research report on Friday. Finally, Wolfe Research cut their price objective on Applied Materials from $230.00 to $200.00 and set an "outperform" rating on the stock in a research report on Friday. Seventeen equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $194.84.

Applied Materials Trading Down 0.8%

Applied Materials stock traded down $1.31 during midday trading on Monday, reaching $162.22. The stock had a trading volume of 8,827,062 shares, compared to its average volume of 7,426,463. The stock's 50-day simple moving average is $184.06 and its 200 day simple moving average is $166.42. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.76 and a current ratio of 2.46. Applied Materials has a twelve month low of $123.74 and a twelve month high of $215.70. The stock has a market capitalization of $130.18 billion, a PE ratio of 19.33, a price-to-earnings-growth ratio of 1.81 and a beta of 1.70.

Hedge Funds Weigh In On Applied Materials

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Eagle Capital Management LLC lifted its position in Applied Materials by 1.8% in the fourth quarter. Eagle Capital Management LLC now owns 16,004 shares of the manufacturing equipment provider's stock worth $2,603,000 after purchasing an additional 290 shares during the period. Brighton Jones LLC lifted its position in Applied Materials by 28.0% in the fourth quarter. Brighton Jones LLC now owns 12,674 shares of the manufacturing equipment provider's stock worth $2,061,000 after purchasing an additional 2,771 shares during the period. Value Partners Investments Inc. lifted its position in Applied Materials by 8.7% in the fourth quarter. Value Partners Investments Inc. now owns 9,896 shares of the manufacturing equipment provider's stock worth $1,608,000 after purchasing an additional 793 shares during the period. Jump Financial LLC lifted its position in Applied Materials by 69.9% in the fourth quarter. Jump Financial LLC now owns 4,829 shares of the manufacturing equipment provider's stock worth $785,000 after purchasing an additional 1,986 shares during the period. Finally, GeoWealth Management LLC lifted its position in Applied Materials by 23.5% in the fourth quarter. GeoWealth Management LLC now owns 6,338 shares of the manufacturing equipment provider's stock worth $1,031,000 after purchasing an additional 1,208 shares during the period. 80.56% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, CAO Adam Sanders sold 562 shares of the business's stock in a transaction dated Tuesday, June 24th. The stock was sold at an average price of $178.60, for a total value of $100,373.20. Following the completion of the sale, the chief accounting officer directly owned 5,300 shares of the company's stock, valued at $946,580. The trade was a 9.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.24% of the stock is currently owned by corporate insiders.

Applied Materials Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 11th. Stockholders of record on Thursday, August 21st will be given a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Thursday, August 21st. Applied Materials's payout ratio is presently 21.93%.

About Applied Materials

Applied Materials, Inc engages in the provision of manufacturing equipment, services, and software to the semiconductor, display, and related industries. The company 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.