Applied Materials exceeds analysts’ estimates for profits and revenues in the fourth quarter.


Applied Materials exceeds analysts’ estimates for fourth quarter earnings and revenues.
The company’s shares rose nearly 3% in Thursday’s extended trading.
Applied now forecasts up to 1.01 pounds sterling per share and up to 3.93 billion pounds in Q1 revenue.

Applied Materials Inc. (NASDAQ: AMAT) on Thursday announced its financial results for the fourth quarter of the fiscal year, which exceeded analysts’ earnings and revenue estimates.

The company’s shares rose nearly 3% in Thursday’s post-trading. So far this year, Applied Materials has risen 15% in the stock market after recovering nearly 80% from its March low due to the coronavirus pandemic. Are you interested in investing in the stock market online? Here is a simple guide to help you get started.

Applied Materials’ financial results for Q4 compared to analysts’ estimates

Applied Materials reported that its fourth quarter net profit was printed at £1.0 billion, or 94 pence per share. In the same quarter last year, the company reported a much lower net profit of £532.17 million or 57.18 pence per share. In the previous quarter (Q3), the Santa Clara-based company had reported a net profit of £641.64 million.

On an adjusted basis, the company earned 95 pence per share in the fourth quarter compared to 61 pence per share in the previous year. In terms of revenue, the U.S.-based company recorded revenues of £3.58 billion, compared to £2.86 billion in the same quarter last year.

According to FactSet, experts had predicted that Applied Materials would generate revenues of £3.51 billion in the final quarter. Their earnings per share estimate was capped at a lower 89 pence per share.

Commenting on Thursday’s earnings report, CEO Gary Dickerson said

“Applied Materials ended fiscal year 2020 with a record quarterly performance as demand for our semiconductor systems and services remains very strong. Our future opportunities have never looked better, and as powerful technology trends take shape, we are uniquely positioned to accelerate our customers’ roadmaps and outperform our markets”.

Applied Materials’ forecast for the first quarter of the fiscal year

For the first quarter of the fiscal year Applied Materials now forecasts a decline in earnings per share in a range of 91 pence per share to £1.01 per share. Its estimate for first quarter sales is in the range of £3.62 billion to £3.93 billion. In contrast, analysts are forecasting first quarter revenues of £3.44 billion and earnings per share of 85 pence.

Last month, Applied Materials teamed up with BE Semiconductor Industries to accelerate chip integration technology for the semiconductor industry. At the time of writing this article, Applied Materials is valued at £48.60 billion and has a price-to-earnings ratio of 20.27.


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