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• The company expects fiscal second-quarter sales to reach approximately $6.5 billion.
• This indicates a potential uptick in investments by major semiconductor companies in new production tech.
• ear-over-year, the company saw a 5% increase in earnings despite a dip in sales.

Applied Materials Inc. (Nasdaq: AMAT), the leading US manufacturer of chipmaking machinery, saw its share price surge in late trading following its optimistic revenue forecast for the current period.

This indicates a potential uptick in investments by major semiconductor companies in new production technologies.
 

Q2 sales set to reach about $6.5 billion

The company expects fiscal second-quarter sales to reach approximately $6.5 billion, exceeding the average analyst estimate of $6.32 billion. Excluding certain items, the projected profit for the period ending in April is estimated to range between $1.79 and $2.15 per share, with the average analyst projection falling towards the lower end of this range.
 

Earnings of $2.13 per share 

In its fiscal first quarter, Applied Materials surpassed Wall Street’s expectations, reporting adjusted earnings of $2.13 per share on sales of $6.71 billion. Analysts had anticipated earnings of $1.90 per share on sales of $6.48 billion. Year-over-year, the company saw a 5% increase in earnings despite a slight dip in sales.
 

What’s the guidance for the ongoing quarter?

For the ongoing quarter, Applied Materials anticipates adjusted earnings of $1.97 per share on sales totaling $6.5 billion, based on the midpoint of its guidance.

This outlook surpasses analysts’ forecasts of earnings amounting to $1.80 per share on sales of $6.34 billion. In the same period last year, the company reported adjusted earnings of $2 per share on sales of $6.63 billion.
 

What the CEO say?

Gary Dickerson, Chief Executive Officer of Applied Materials, expressed satisfaction with the company’s strong performance in the first quarter of fiscal 2024, highlighting its consistent market outperformance over the past five years.

He emphasized Applied Materials’ strategic positions in critical semiconductor technologies essential for artificial intelligence (AI) and the Internet of Things (IoT) applications, foreseeing continued growth as customers transition to next-generation chip technologies.

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