Equities Analysts Set Expectations for AMAT FY2027 Earnings

Key Points

• Equities analysts from Zacks Research have revised Applied Materials' FY2027 earnings estimate down from $10.84 to $10.02 per share, compared to a current consensus estimate of $9.38 per share for this year.
• Applied Materials recently reported a quarterly earnings per share (EPS) of $2.48, exceeding estimates, with revenues up 7.7% year-over-year, reaching $7.30 billion.
• The company's quarterly dividend of $0.46 will be paid on September 11th, with a current dividend yield of 1.1% and a payout ratio of 21.93%.

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Equities researchers at Zacks Research reduced their FY2027 earnings estimates for Applied Materials in a research report issued on Thursday, September 4th. Zacks Research analyst Team now expects that the manufacturing equipment provider will earn $10.02 per share for the year, down from their previous estimate of $10.84. The consensus estimate for Applied Materials' current full-year earnings is $9.38 per share.

Applied Materials (NASDAQ:AMAT - Get Free Report) last issued its quarterly earnings results on Thursday, August 14th. The manufacturing equipment provider reported $2.48 EPS for the quarter, topping the consensus estimate of $2.36 by $0.12. Applied Materials had a net margin of 23.88% and a return on equity of 40.96%. The firm had revenue of $7.30 billion during the quarter, compared to analyst estimates of $7.21 billion. During the same quarter in the prior year, the business posted $2.12 earnings per share. Applied Materials'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 equities research analysts also recently issued reports on AMAT. UBS Group decreased their price objective on shares of Applied Materials from $185.00 to $180.00 and set a "neutral" rating for the company in a research note on Friday, August 15th. Morgan Stanley boosted their price objective on shares of Applied Materials from $169.00 to $172.00 and gave the stock an "equal weight" rating in a research note on Friday, August 15th. Citigroup decreased their price objective on shares of Applied Materials from $220.00 to $205.00 and set a "buy" rating for the company in a research note on Friday, August 15th. Cfra Research upgraded shares of Applied Materials to a "hold" rating in a research note on Friday, August 15th. Finally, Needham & Company LLC reiterated a "buy" rating and set a $195.00 price objective on shares of Applied Materials in a research note on Friday, May 16th. Seventeen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Applied Materials presently has an average rating of "Moderate Buy" and a consensus target price of $193.88.

Applied Materials Stock Performance

Shares of AMAT stock opened at $162.75 on Monday. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.76 and a current ratio of 2.50. Applied Materials has a one year low of $123.74 and a one year high of $215.70. The company has a 50 day moving average price of $180.02 and a 200 day moving average price of $164.78. The firm has a market capitalization of $129.65 billion, a price-to-earnings ratio of 19.40, a price-to-earnings-growth ratio of 2.32 and a beta of 1.77.

Applied Materials Dividend Announcement

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

Insider Buying and Selling at Applied Materials

In other news, CAO Adam Sanders sold 562 shares of the company's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $178.60, for a total value of $100,373.20. Following the completion of the transaction, the chief accounting officer directly owned 5,300 shares in the company, valued at approximately $946,580. This represents a 9.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.24% of the company's stock.

Institutional Trading of Applied Materials

Several institutional investors have recently added to or reduced their stakes in AMAT. Brighton Jones LLC raised its holdings 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 valued at $2,061,000 after acquiring an additional 2,771 shares in the last quarter. Value Partners Investments Inc. raised its holdings 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 valued at $1,608,000 after acquiring an additional 793 shares in the last quarter. Humankind Investments LLC raised its holdings in Applied Materials by 28.2% in the fourth quarter. Humankind Investments LLC now owns 1,503 shares of the manufacturing equipment provider's stock valued at $244,000 after acquiring an additional 331 shares in the last quarter. Hudson Bay Capital Management LP acquired a new stake in Applied Materials in the fourth quarter valued at $32,534,000. Finally, Jefferies Financial Group Inc. raised its holdings in Applied Materials by 1,119.9% in the fourth quarter. Jefferies Financial Group Inc. now owns 42,257 shares of the manufacturing equipment provider's stock valued at $6,872,000 after acquiring an additional 38,793 shares in the last quarter. 80.56% of the stock is 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. 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.

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