Applied Materials (AMAT) To Report Earnings Tomorrow: Here Is What To Expect

Maker of machinery employed in semiconductor manufacturing, Applied Materials (NASDAQ:AMAT) will be reporting earnings tomorrow afternoon. Here's what you need to know.

Last quarter Applied Materials reported revenues of $6.72 billion, down 0.4% year on year, beating analyst revenue expectations by 3.4%. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and a decent beat of analysts' revenue estimates.

Is Applied Materials buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Applied Materials's revenue to decline 3.8% year on year to $6.49 billion, a deceleration on the 7.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.91 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.8%.

Looking at Applied Materials's peers in the semiconductor manufacturing segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. FormFactor delivered top-line growth of 1.3% year on year, beating analyst estimates by 1.7% and Entegris reported revenue decline of 14.1% year on year, exceeding estimates by 4%. FormFactor traded down 2.3% on the results, and Entegris was up 2.3%.

Read our full analysis of FormFactor's results here and Entegris's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 4.7% over the last month. Applied Materials is up 17.4% during the same time, and is heading into the earnings with analyst price target of $173.8, compared to share price of $180.6.

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