Technology

Snowflake Likely to Beat First-Quarter Revenue Views, RBC Say

Snowflake (SNOW) is tracking toward a modest fiscal first-quarter revenue beat and positive guidance revisions amid potential product sales upside, RBC Capital Markets said in a note emailed Monday. The brokerage said markets are assuming 2% to 3% upside to the first-quarter consensus for total revenue of $787 million and product revenue of $744 million. They both imply year-over-year growth of 26%. Shares of Snowflake were up 1.5% in afternoon trade. The cloud-based data analytics platform topped product expectations by an average of 2.9% over the last four quarters, according to RBC’s analysis. A 2.5% beat in the May 22 report would imply product revenue closer to $762 million, a year-over-year gain of 29%, according to RBC. RBC is modeling for first-quarter total revenue of $784.5 million and adjusted earnings per share of $0.15, compared with the $0.17 average analyst estimate on Capital IQ. “We see a better setup this […]

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Palo Alto Networks tumbles following billings guidance despite solid Q3 results

Palo Alto Networks’ (NASDAQ:PANW) third-quarter fiscal year 2024 financial results bested market expectations, but stocks sunk during post-market trading on lowered billings’ guidance. The Santa Clara, Calif.-based cybersecurity company tumbled 8% after its latest financial results and outlook was issued after the market closed on Monday. For the quarter, Palo Alto reported non-GAAP earnings per share of $1.32 versus the consensus of $1.25 and total revenue of $2B versus the consensus of $1.97B. Looking ahead, Palo Alto Networks expects fourth quarter earnings per share of $1.40 to $1.42, which is nearly in-line with the estimate of $1.42. Total revenue expectations for the quarter range from $2.15B to $2.17B, which is also close to the estimate of $2.17B. Billings for fiscal year 2024 are now expected to range from $10.13B to $10.18B, which represents year-over-year growth of 10% to 11%. In February, the company lowered its full-year revenue and slashed its FY24E billings guide

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These Analysts Boost Their Forecasts On Applied Materials After Upbeat Results

Applied Materials Inc (NASDAQ:AMAT) reported better-than-expected financial results for the second quarter on Thursday. “Applied Materials continues to deliver strong performance in 2024, with fiscal second quarter revenue and earnings towards the high end of our guided range,” said Gary Dickerson, president and CEO of Applied Materials. “Applied Materials has the most enabling portfolio of materials engineering technologies for chips that underpin tectonic shifts in technology including AI, IoT, electric vehicles and clean energy, which puts us in a great position to grow along with these long-term, secular trends.” The company said it sees third-quarter revenue of $6.65 billion, plus or minus $400 million, versus estimates of $6.576 billion. The company projects third-quarter adjusted earnings to be between $1.83 and $2.19 per share, versus estimates of $1.98 per share. Applied Materials shares fell 1.6% to close at $214.03 on Thursday. These analysts made changes to their price targets on Applied Materials

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Applied Materials(NASDAQ:AMAT) Q2 2024 Earnings Conference

The following is a summary of the Applied Materials, Inc. (NASDAQ:AMAT) Q2 2024 Earnings Call Transcript: Financial Performance: Applied Materials reported Q2 net sales of nearly $6.65 billion, a slight increase from previous quarters. AGS revenue grew 7% year over year to $1.53 billion. The company returned approximately $1.1 billion to shareholders, including $266 million in dividends and $820 million in buybacks. Non-GAAP gross margin increased by 70 basis points to 47.5%, while non-GAAP EPS grew by 4.5% to $2.09. For Q3, Applied Materials forecasts a revenue of $6.65 billion, plus or minus $400 million, and non-GAAP EPS of $2.01, plus or minus $0.18. Business Progress: Revenues from the advanced packaging product portfolio is expected to grow to about $1.7 billion this year and possibly double in future. Applied Materials is targeting to generate more than $2.5 billion in revenue from gate-all-around nodes this year and expects this to potentially

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CFRA Maintains Buy Rating On Shares Of Applied Materials, Inc.

We raise our price target by $7 to $240, 25x our CY 25 EPS view ($9.61), near peers and above AMAT’s 3-year average (~16x) on rising AI momentum and improving conditions across multiple end markets. We raise our FY 24 (Oct.) EPS view by $0.07 to $8.45, raise FY 25’s by $0.19 to $9.41, and initiate a FY 26 view at $10.58. AMAT posts Apr-Q sales of $6.65B (flat Y/Y) and EPS of $2.09 (+5%), near consensus, while raising its ’24 advanced packaging sales projection by $0.2B to $1.7B on stronger HBM packaging growth and providing a bullish forecast for GAA-related equipment sales (~$2.5B of incremental sales expected in CY 25) as customers ramp 2-nm node activity. We see tailwinds from rising AI demand fueling further growth across both logic and memory, and we are encouraged by positive commentary on ICAPS strength considering global weakness in the auto / industrial

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Applied Materials Faces China Hurdles, ‘Strong Offsetting Tailwinds’ After Fiscal Q2 Tops Consensus, Morgan Stanley Says

Applied Materials (AMAT) faces the prospect of softer China demand and “strong offsetting tailwinds” in logic chips and advanced semiconductor packaging after fiscal Q2 results topped consensus, Morgan Stanley said Friday in a note. “At the risk of sounding like a broken record, we do believe the company that China will trend back toward the more traditional 30% of revenue from the current 43%,” the note said. “We remain on the cautious side of that; a region that is less than 5% of the global manufacturing footprint in foundry and memory driving over 40% of equipment sales and driving growth in trailing edge ICAP revenues higher during the worst analog inventory correction in 30 years, has unsustainable elements that make us cautious,” Morgan Stanley said. Still, “several trends are likely to prove strong offsetting tailwinds as the company has positioned themselves well in advanced logic and advanced packaging,” the note

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Salesforce’s Seasonally Soft Q1 Offset by Bullish Outlook on GenAI Business, Morgan Stanley Says

Salesforce’ (CRM) upcoming fiscal Q1 results are unlikely to spur excitement as it is usually a seasonally soft quarter, and with foreign exchange headwinds and weak prints from front-office peers tempering expectations, Morgan Stanley said in a report Friday. But the firm said the near-term caution is being offset by its “increasingly bullish” medium-term outlook for Salesforce amid increasing demand for generative AI capabilities. Morgan Stanley said it expects the currency headwind to modestly increase throughout the rest of the fiscal year, and does not anticipate any near-term topline boost from the company’s generative AI adoption at this stage. “Q1s historically do not support much upward revisions to full year guidance,” it said. However, the firm said Salesforce looks “well positioned to expose GenAI capabilities within their sticky workflow to the large customer base.” “Salesforce’s position as a front office application vendor should position the company in the right place

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Salesforce First Quarter Likely Has Fewer Catalysts to Be Excited About, Morgan Stanley Says

Salesforce (CRM) likely has fewer catalysts heading into fiscal first-quarter results despite stable demand, though the software maker appears to be in a “solid” position ahead of generative artificial intelligence product adoption in the medium term, Morgan Stanley said Friday. The company is scheduled to release first-quarter results May 29. Morgan Stanley expects earnings of $2.40 a share on revenue of about $9.07 billion. Wall Street is looking for $2.38 and $9.16 billion, respectively, according to the brokerage. Salesforce performed above its large-cap software peers over the past three months, aided by a first-ever dividend, increased repurchases and upward revisions to estimates, Morgan Stanley said in a note. However, its more recent performance has “softened” following a report on a potential Informatica (INFA) takeover, while many of its front-office software peers have logged weaker-than-projected quarterly results amid a softer demand backdrop, the brokerage said. Last month, cloud data management company

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Microsoft Positioned Well in AI Realm, RBC Says

Microsoft’s (MSFT) trajectory for growth and leading position in artificial intelligence is encouraging, RBC Capital Markets said in a note Friday. “Microsoft continues to invest aggressively in AI, given the market opportunity and its early leadership,” RBC said. This strategy contrasts with Microsoft’s previous approach to cloud computing when it was competing with Amazon.com’s (AMZN) Amazon Web Services. Despite expected increases in capital expenditures that could impact profit margins, Microsoft is viewed as aligning with market demand and actively seeking to mitigate costs, RBC said. “Advances like GPT-4o, which is more efficient, and Maia (custom AI silicon) will help drive down the cost curve.” Additionally, cloud computing and Copilot feature show promise, while security and gaming also have growth opportunities. Microsoft’s strategic focus on software/services in gaming aims to enhance margins and reduce cyclicality. The company believes customers will build their own AI models, not just from scratch, but fine-tune

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Nvidia Poised for Beat, Raise Amid Strong AI Accelerator Demand, Oppenheimer Says

Nvidia (NVDA) is likely poised for a beat-and-raise heading into its latest financial results amid an “insatiable” appetite for artificial intelligence accelerator among cloud service providers, Oppenheimer said Friday. The semiconductor maker is scheduled to report its fiscal first-quarter results Wednesday. Oppenheimer expects non-GAAP earnings to jump to $5.68 a share from $1.09 a year earlier, with net sales seen surging 248% to $25.06 billion. Analysts polled by Capital IQ are looking for $5.57 and $24.49 billion, respectively. An AI accelerator is a specialized hardware or software component that helps accelerate the performance of AI-based applications. Oppenheimer expects strong performance at the company’s data center business as supply constraints around its flagship H100 graphics processing unit continue to ease. The brokerage expects lead times to be less than 20 weeks, compared with a peak of about 50 weeks a year earlier, allowing Nvidia’s management to better capture demand. “We see

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HP to Post ‘Strong’ Fiscal Q2 Margins, Weak Personal Computer Revenue in Short Term, BofA Says

HP (HPQ) will likely report strong fiscal Q2 margins in the personal system and print divisions driven by its cost management actions, BofA Securities said in an earnings preview Thursday. BofA said it expects revenue of the personal computer division to be weak in the near term with a potential recovery in H2. The company’s print division will face revenue headwinds due to soft demand in China and a tough pricing environment amidst a weakening Yen, which favors HP’s competitors, according to the preview. The firm expects HP’s fiscal Q2 earnings per share to align with the mid-point of company guidance between $0.76 and $0.86 and street estimates of $0.81. BofA anticipates Q2 revenue of $12.5 billion for the quarter, below estimates of $12.6 billion, and raised its 2025 revenue outlook to $55 billion from $53 billion based on personal computer momentum into 2025. HP’s fiscal Q2 earnings are slated

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Google’s Potential Gemini-Apple Deal Announcement Seen Shifting to June Conference, UBS Says

Alphabet-owned (GOOGL, GOOG) Google’s potential deal to license its Gemini generative artificial intelligence for iPhones may be featured at Apple’s (AAPL) Worldwide Developers Conference in June, UBS Securities said Thursday in a report. “We now look to WWDC24 as the next potential catalyst venue” for the deal after the Google I/O annual developer conference concluded with no announcement, UBS said. As expected, UBS said I/O 2024 highlighted Gemini’s capabilities. “It seemed to us that Google was more keen this year to thematically and explicitly draw the link between Gemini and practical contextual utility across many of its apps,” the report said. “That Google is incorporating Gemini not just within its apps but also within the Android OS in our view underscores the reason why all hardware manufacturers should be weighing working with the company to drive innovation,” UBS said. UBS also said a broader rollout for Google’s AI Overviews is

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