By Emily Bary CEO expects ‘continued outperformance as customers ramp next-generation chip technologies critical to AI’ and the Internet of Things Applied Materials Inc. delivered upbeat results and guidance Thursday afternoon, and its stock was surging in the extended session. The chip-equipment company logged fiscal-first quarter net income of $2.02 billion, or $2.41 a share, compared with $1.72 billion, or $2.02 a share, in the year-prior quarter. On an adjusted basis, Applied Materials (AMAT) earned $2.13 a share, up from $2.03 a share a year before, while analysts tracked by FactSet were modeling $1.90 a share. Net revenue inched lower to $6.71 billion from $6.74 billion, but came in above consensus forecasts, which were for $6.48 billion. The stock was up nearly 10% in after-hours action Thursday. Read: Super Micro’s stock has surged 900% in a year. Why BofA is making a ‘buy’ call. “Our leadership positions at key semiconductor […]

The following is a summary of the Applied Materials, Inc. (AMAT) Q1 2024 Earnings Call Transcript: Financial Performance: Applied Materials reported Q1 2024 revenues at the high end of their guided range, marking a strong start. Non-GAAP gross margin saw growth, landing at 47.9%, a 110 basis point increase from last year. Non-GAAP net profit per share for Q1 grew by almost 5%, reaching $2.13. Semiconductor Systems revenues were robust at $4.91 billion, while Applied Global Services saw an approximate 8% YoY gain, reaching nearly $1.8 billion. Display segment reported revenues of $244 million with a non-GAAP operating profit of 10.2%. For Q2, the company expects a non-GAAP EPS of $1.97, ± $0.18, with revenues forecasted to be $6.5 billion ± $400 million. Business Progress: The company is capitalizing on key industry inflections, particularly in AI, IoT, electric vehicles, and renewable energy. Its focus on DRAM technologies like High-Bandwidth Memory

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We increase our price target by $76 to $233, 27.5x our CY 24 EPS estimate of $8.46, near peers but above Applied Materials, Inc. (Nasdaq: AMAT)’s 3-year historical average (~17x) given its leading position across multiple technology inflections and AI enthusiasm. We raise our ’24 EPS view to $8.38 from $7.76 and ’25’s to $9.22 from $8.62. AMAT posts Dec-Q sales of $6.7B (flat Y/Y) and EPS of $2.13 (+5%), both above consensus. We see AMAT’s broad product portfolio as among the best positioned in the semi space going into ’24, where we see rebounds across both foundry/logic and memory as new fabs continue to ramp (and gate-all-around technology accelerates) and AI applications continue to fuel advanced DRAM demand. We also see upside in NAND as layer