AMAT Stock Rises As Applied Materials Beats Q4 Views

Semiconductor equipment maker Applied Materials (AMAT) late Thursday beat Wall Street’s targets for its fiscal fourth quarter and guided analysts higher for the current period. The earnings news drove AMAT stock up in extended trading.


The Santa Clara, Calif.-based company earned an adjusted $1.25 a share on sales of $4.69 billion in the quarter ended Oct. 25. Analysts expected Applied Materials earnings of $1.17 a share on sales of $4.6 billion. On a year-over-year basis, earnings rose 56% while sales climbed 25%.

It was the company’s fourth straight quarter of accelerating sales and earnings growth on a year-over-year basis.

“Applied Materials closed fiscal 2020 with record quarterly performance as demand for our semiconductor systems and services remains very strong,” Chief Executive Gary Dickerson said in a news release. “Our future opportunities have never looked better and, as powerful technology trends take shape, we are uniquely positioned to accelerate our customers’ road maps and outperform our markets.”

AMAT Stock Rises On Beat-And-Raise Report

For the current quarter, Applied Materials expects to earn an adjusted $1.26 a share on sales of $4.95 billion. That’s based on the midpoint of its guidance. Wall Street was modeling earnings of $1.11 a share on sales of $4.52 billion in the fiscal first quarter. In the year-earlier period, Applied Materials earned 98 cents a share on sales of $4.16 billion.

In after-hours trading on the stock market today, AMAT stock rose 3.2%, near 72. During the regular session, ahead of the earnings news, AMAT stock dropped 1.9% to 69.80.

On Nov. 5, AMAT stock broke out of an 11-week consolidation period at a buy point of 70, according to IBD MarketSmith charts. AMAT stock spiked to an all-time high of 75.93 on Nov. 9.

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Several chip-gear stocks have broken out of proper bases recently. Others include Brooks Automation (BRKS), Entegris (ENTG), Lam Research (LRCX) and Teradyne (TER).

On Tuesday, Brooks Automation delivered better-than-expected results for its fiscal fourth quarter ended Sept. 30. It earned an adjusted 47 cents a share, up 104% year over year, on sales of $246 million, up 24%.

AMAT stock is one of four semiconductor equipment makers on the IBD 50 list of top-performing growth stocks.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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