Zacks Research Issues Optimistic Forecast for AMAT Earnings

Applied Materials, Inc. (NASDAQ:AMAT - Free Report) - Zacks Research raised their FY2025 earnings estimates for shares of Applied Materials in a research report issued to clients and investors on Thursday, June 5th. Zacks Research analyst R. Department now forecasts that the manufacturing equipment provider will earn $9.21 per share for the year, up from their prior estimate of $9.13. The consensus estimate for Applied Materials' current full-year earnings is $9.38 per share. Zacks Research also issued estimates for Applied Materials' Q1 2026 earnings at $2.32 EPS, Q2 2026 earnings at $2.41 EPS, Q3 2026 earnings at $2.42 EPS, Q4 2026 earnings at $2.51 EPS, FY2026 earnings at $9.65 EPS, Q1 2027 earnings at $2.54 EPS, Q2 2027 earnings at $2.71 EPS and FY2027 earnings at $10.84 EPS.

Applied Materials (NASDAQ:AMAT - Get Free Report) last released its earnings results on Thursday, May 15th. The manufacturing equipment provider reported $2.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.31 by $0.08. Applied Materials had a net margin of 22.95% and a return on equity of 39.50%. The business had revenue of $7.10 billion for the quarter, compared to analyst estimates of $7.12 billion. During the same quarter in the previous year, the business earned $2.09 earnings per share. Applied Materials's revenue for the quarter was up 6.8% on a year-over-year basis.

AMAT has been the subject of several other reports. Raymond James reissued an "outperform" rating and set a $200.00 price objective (down from $225.00) on shares of Applied Materials in a report on Friday, May 16th. Cantor Fitzgerald reduced their price objective on shares of Applied Materials from $220.00 to $200.00 and set an "overweight" rating for the company in a research note on Monday, May 12th. Bank of America dropped their price objective on Applied Materials from $205.00 to $190.00 and set a "buy" rating for the company in a research note on Wednesday, April 16th. B. Riley dropped their target price on shares of Applied Materials from $250.00 to $215.00 and set a "buy" rating for the company in a research report on Monday, May 12th. Finally, Wall Street Zen upgraded Applied Materials from a "hold" rating to a "buy" rating in a report on Friday. Six equities research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $199.29.

Applied Materials Stock Up 1.8%

Shares of AMAT stock traded up $3.05 during midday trading on Monday, reaching $169.79. 6,268,701 shares of the stock were exchanged, compared to its average volume of 6,963,114. Applied Materials has a 1 year low of $123.74 and a 1 year high of $255.89. The firm has a market cap of $136.26 billion, a PE ratio of 22.19, a price-to-earnings-growth ratio of 1.81 and a beta of 1.67. The company's 50 day moving average is $152.23 and its two-hundred day moving average is $163.11. The company has a current ratio of 2.67, a quick ratio of 1.96 and a debt-to-equity ratio of 0.29.

Applied Materials announced that its board has initiated a stock buyback program on Monday, March 10th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the manufacturing equipment provider to repurchase up to 8.2% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's management believes its stock is undervalued.

Insider Activity

In other Applied Materials news, CEO Gary E. Dickerson bought 50,000 shares of Applied Materials stock in a transaction that occurred on Thursday, April 3rd. The shares were bought at an average cost of $137.30 per share, with a total value of $6,865,000.00. Following the transaction, the chief executive officer now directly owns 1,716,058 shares of the company's stock, valued at approximately $235,614,763.40. This represents a 3.00% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Adam Sanders sold 450 shares of the business's stock in a transaction dated Tuesday, April 1st. The shares were sold at an average price of $144.83, for a total value of $65,173.50. Following the sale, the chief accounting officer now owns 6,077 shares in the company, valued at approximately $880,131.91. The trade was a 6.89% decrease in their position. The disclosure for this sale can be found here. Insiders own 0.24% of the company's stock.

Hedge Funds Weigh In On Applied Materials

Several institutional investors and hedge funds have recently modified their holdings of AMAT. FPC Investment Advisory Inc. purchased a new stake in Applied Materials in the 4th quarter worth approximately $28,000. Runnymede Capital Advisors Inc. lifted its holdings in Applied Materials by 972.2% during the first quarter. Runnymede Capital Advisors Inc. now owns 193 shares of the manufacturing equipment provider's stock valued at $28,000 after purchasing an additional 175 shares in the last quarter. Smallwood Wealth Investment Management LLC acquired a new stake in shares of Applied Materials in the first quarter valued at about $29,000. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of Applied Materials by 435.0% during the first quarter. Clal Insurance Enterprises Holdings Ltd now owns 214 shares of the manufacturing equipment provider's stock worth $31,000 after purchasing an additional 174 shares in the last quarter. Finally, Activest Wealth Management raised its position in shares of Applied Materials by 5,325.0% during the 1st quarter. Activest Wealth Management now owns 217 shares of the manufacturing equipment provider's stock worth $31,000 after purchasing an additional 213 shares during the last quarter. Institutional investors and hedge funds own 80.56% of the company's stock.

Applied Materials Company Profile

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.