Applied Materials Inc. (NASDAQ:AMAT) on Thursday reported better-than-expected second-quarter financial results and issued strong third-quarter guidance.
Applied Materials reported second-quarter revenue of $7.91 billion, beating analyst estimates of $7.65 billion. The chip equipment manufacturer reported adjusted earnings of $2.86 per share for the quarter, beating analyst estimates of $2.66 per share, according to Benzinga Pro.
"The rapid global build-out of AI computing infrastructure, combined with Applied's strong leadership positions in leading-edge logic, DRAM and advanced packaging, provides an exceptionally strong foundation for sustained, multi-year revenue and profit growth," said Gary Dickerson, president and CEO of Applied Materials.
Applied Materials expects third-quarter revenue of $8.95 billion, plus or minus $500 million, versus estimates of $8.09 billion. The company expects third-quarter adjusted earnings of $3.16 to $3.56 per share, versus estimates of $2.88 per share.
Applied Materials shares fell 1.7% to $432.96 in pre-market trading.
These analysts made changes to their price targets on Applied Materials following earnings announcement.
- Morgan Stanley analyst Shane Brett maintained the stock with an Overweight rating and raised the price target from $454 to $502.
- Needham analyst Charles Shi maintained the stock with a Buy and raised the price target from $440 to $530.
- Keybanc analyst Steve Barger maintained the stock with an Overweight rating and raised the price target from $450 to $550.
- Cantor Fitzgerald analyst C.J. Muse maintained the stock with an Overweight rating and raised the price target from $550 to $575.
- RBC Capital analyst Srini Pajjuri maintained the stock with an Outperform rating and raised the price target from $500 to $520.
- Mizuho analyst Vijay Rakesh maintained Applied Materials with an Outperform rating and raised the price target from $410 to $500.
Considering buying AMAT stock? Here’s what analysts think:
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