Core Insights - Applied Materials reported strong fiscal Q3 earnings, with earnings per share (EPS) of $2.48 and sales of $7.3 billion, exceeding analyst expectations of $2.36 EPS and $7.2 billion in sales [1][3] - Despite the strong Q3 performance, the company issued a disappointing Q4 guidance, projecting adjusted EPS of $2.11 and a sequential sales decline of approximately 8% to around $6.7 billion [4][5] Financial Performance - Q3 sales increased by 8% year over year, and operating profit margin improved by nearly 2 percentage points [3] - Net income grew by only 4%, with EPS growth matching sales growth at 8% [3] - GAAP EPS was reported at $2.22, significantly lower than the adjusted EPS of $2.48 [3] Future Outlook - The company attributed the lowered Q4 guidance to a "dynamic macroeconomic and policy environment," which has created increased uncertainty and lower visibility [5] - Concerns were raised regarding the "digestion of capacity" in China, which had previously stocked up on semiconductor manufacturing equipment [5] - Purchasing activity from leading-edge customers is described as "lumpy," further complicating sales growth [5] Valuation Considerations - With a trailing P/E ratio of 23, Applied Materials stock may not appear overly expensive; however, potential sales shrinkage raises concerns about the stock's valuation [6]

Core Viewpoint - Applied Materials' warning about declining revenue and profits in Q4 2025 has negatively impacted Lam Research's stock performance, raising concerns among investors about potential similar outcomes for Lam [1][4][6] Group 1: Applied Materials Performance - Applied Materials reported Q3 fiscal 2025 earnings of $2.48 per share on sales of $7.3 billion, exceeding analyst expectations of $2.36 per share and $7.2 billion in sales [3] - However, the company projected Q4 profits to drop to approximately $2.11 per share, below Wall Street's forecast of $2.38 per share [4] - Q4 revenue is expected to decline to $6.7 billion, an 8% decrease compared to Wall Street expectations, attributed to "digestion of capacity in China" and "non-linear demand from leading-edge customers" [5][6] Group 2: Impact on Lam Research - Lam Research's stock fell by 6.9% following Applied Materials' announcement, reflecting investor concerns about the semiconductor equipment market [1][6] - The current valuation of Lam Research at 26 times earnings raises questions about its attractiveness as an investment, suggesting it may be time for investors to consider selling [6]

Applied Materials was the worst-performing stock in the S&P 500 Friday, a day after the semiconductor equipment manufacturer gave weaker-than-expected guidance as global economic and tariff worries impact its business, especially in China. https://t.co/Sr0XY7oECu ...

What happens when a tech giant’s impressive earnings report can’t shield it from a market nosedive? As  Applied Materials Inc. AMAT experiences a surprising slump, analysts weigh in on the forces at play behind the scenes. Shares of Applied Materials declined in early trading on Friday, despite the company’s upbeat fiscal third-quarter results reported on Thursday.The announcement came amid an exciting earnings season. Here are some key analyst takeaways.BofA Securities On Applied MaterialsAnalyst Vivek Ary ...

Group 1 - Applied Materials reported fiscal third-quarter results that exceeded analyst estimates, but the stock is declining due to a lower-than-expected revenue forecast of $6.7 billion for the fiscal fourth quarter, compared to expectations of $7.3 billion [1] - The decline in stock price is exacerbated by a downgrade from BofA Global Research, which changed its rating from "buy" to "neutral" and reduced the price target from $190 to $180 [2] - Over the past 12 months, Applied Materials shares have decreased by 22.9%, and if current losses persist, it could mark the worst trading session since March 2020 [2] Group 2 - Despite the recent downturn, 24 out of 33 firms covering Applied Materials still rate it as "buy" or better, with a 12-month consensus target price of $196.85, indicating a 20.3% premium to current levels [3] - The stock's 10-day put/call volume ratio of 1.38 is higher than all other annual readings, indicating a significant increase in bearish sentiment among options traders [4] - Today's options activity shows a notable increase in trading volume, with 87,000 puts and 57,000 calls traded, which is 12 times the typical volume, highlighting heightened bearish activity [4]

Shares of Applied Materials plummeting double digits post earnings, hitting a host of other chip names today. Our Christina Parts and Neilos is here to break things down, talk about what happened in the quarter. Morning KP. >> Hi, good morning.It's quite a quarter for them. Applied materials earnings aren't just a company specific problem, though. They're really just a it's a warning sign for the entire semiconductor capital equipment sector.And what do I mean by that. The company said in the earnings call ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Viewpoint - Applied Materials experienced a significant sell-off following its Q3 results, primarily due to weak guidance and market uncertainty, which presents a potential buying opportunity for investors [1][2]. Financial Performance - Q3 revenue reached $7.3 billion, reflecting a 7.7% year-over-year growth, driven by a 10% increase in Semiconductor Systems, particularly in the flash memory market [12]. - Adjusted earnings per share were $2.48, marking a 17% increase and surpassing consensus estimates by 12 cents [13]. Guidance and Market Dynamics - The company provided weaker-than-expected guidance for Q4, citing significant uncertainties and a wide margin of error, which has contributed to market concerns [13][14]. - Despite the short-term guidance issues, the long-term outlook remains positive, with over 70 new semiconductor fabrication facilities being built globally [14]. Capital Return and Shareholder Value - The company has a strong capital return strategy, including dividends and aggressive share repurchases, with a low payout ratio and a robust distribution growth outlook [3][5]. - Share repurchases in Q3 were nearly double compared to the previous year, reducing the share count by an average of 3.7% [6][9]. Analyst Sentiment and Price Forecast - The consensus among analysts is a Moderate Buy rating, with 70% rating it as Buy or higher, and a price target of approximately $205, indicating an 18.42% upside from the current price [10][8]. - The stock is trading near long-term lows, with a dividend yield exceeding 1.0%, which may attract long-term investors [7][1].

Group 1 - Applied Materials shares fell over 13% due to weak guidance amid demand pressures in China [1] - The company forecasted adjusted earnings of $2.11 per share for the current quarter, below the expected $2.39 per share [1] - Projected revenue is $6.7 billion, compared to the $7.34 billion estimate [1] Group 2 - CEO Gary Dickerson highlighted that the macroeconomic backdrop and trade issues have led to "increasing uncertainty and lower visibility," particularly in the China market [2] - The guidance provided does not include pending export license applications and assumes a significant backlog [2]

Applied Materials Inc. AMAT stock is plunging on Friday after the company reported financial results for the third quarter after market close on Thursday.The chip equipment manufacturer reported third-quarter revenue of $7.3 billion, beating analyst estimates of $7.22 billion, with adjusted earnings of $2.48 per share, beating analyst estimates of $2.36 per share.Outlook“We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and non-linear demand from leadi ...