Core Viewpoint - Applied Materials reported financial results for Q1 2025, with stock experiencing a significant pullback despite meeting revenue expectations and exceeding earnings guidance [1][2]. Financial Performance - Q1 revenue was $7.17 billion, aligning with management's guidance, while adjusted EPS grew 12% year-over-year to $2.38, surpassing expectations [2]. - For Q2, the company anticipates revenue of $7.1 billion, which, although an increase year-over-year, fell short of investor expectations [3]. Market Conditions - The company faces a $400 million headwind due to new trade restrictions, with half of this impact expected in Q2, indicating that the challenges stem from export issues rather than demand [3]. - Investors are adjusting their outlook on Applied Materials based on these macroeconomic changes [3]. Long-term Outlook - Despite current headwinds, Applied Materials is positioned in a resilient and growing semiconductor market, suggesting potential for long-term demand growth [4][5]. - The stock may present a buying opportunity as valuations become more attractive, although investors should be prepared for volatility [5].

Wall Street analysts revised their price targets on Applied Materials, Inc AMAT after the company released its first-quarter results Thursday.The company reported a quarterly revenue of 7.17 billion, up by 7%, topping the analyst consensus estimate of $7.14 billion. It reported an adjusted EPS of $2.38, beating the analyst consensus estimate of $2.29.Also Read: Lam Research Commits $1.2 Billion Investment In India, Eyes $63 Billion Semiconductor Growth MarketApplied Materials expects second-quarter revenue ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Applied Materials (AMAT) ended first-quarter fiscal 2025 on a strong note by reporting better-than-expected results. First-quarter non-GAAP earnings of $2.38 per share surpassed the Zacks Consensus Estimate by 4.4% and improved 12% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.AMAT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 7.5%.Applied Materials’ first-quarter fiscal 2025 revenues of $7.17 billion b ...

Financial Data and Key Metrics Changes - Applied Materials reported record revenues of approximately $7.2 billion for Q1 2025, representing a 7% year-over-year increase [24][29] - Non-GAAP earnings per share (EPS) reached a record $2.38, up 12% year-over-year [23][26] - Non-GAAP gross margin was 48.9%, the highest quarterly gross margin since fiscal year 2000, up 100 basis points year-over-year [24][26] Business Line Data and Key Metrics Changes - Semiconductor system sales were $5.36 billion, up 9% year-over-year, driven by a 20% growth in foundry logic, while DRAM sales declined due to prior year sales to customers in China not repeating [26][30] - Applied Global Services (AGS) revenue was $1.59 billion, up 8% year-over-year, with healthy growth in services partially offset by a decline in sales of 200-millimeter equipment [27] - The display business generated revenue of $183 million [28] Market Data and Key Metrics Changes - The global semiconductor sales grew approximately 20% year-on-year in 2024, with expectations to exceed $1 trillion in annual revenues by 2030 [8][9] - The impact of new trade rules is estimated to reduce revenue by approximately $400 million in fiscal 2025, with nearly half of that impact expected in Q2 [13][31] - China is anticipated to represent a smaller portion of global wafer fab equipment spending in 2025, with a projected revenue contribution about five percentage points lower than in Q1 [31][32] Company Strategy and Development Direction - The company is focused on developing and commercializing enabling technologies across leading-edge logic, memory, advanced packaging, and ICAPS [14][19] - High-velocity co-innovation is emphasized as a key strategy to bring next-generation technology to market faster and at lower costs [17][21] - Significant investments in R&D are being made to grow share at the leading edge and to enhance capital investments for co-innovation [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth opportunities across all business segments, despite trade restrictions impacting near-term service growth [20][33] - The outlook for Q2 includes expected total revenue of approximately $7.1 billion, representing a 7% increase year-over-year, with non-GAAP EPS projected at $2.30, a 10% increase year-over-year [32][34] - The company anticipates a return to growth in AGS in Q3 after a step back in Q2 due to trade restrictions [31][56] Other Important Information - The company distributed $1.6 billion to shareholders in the quarter, including $1.3 billion in share repurchases and $326 million in dividends [24][29] - The construction of the EPIC Center in Silicon Valley is on track to be operational by 2026, serving as a global collaboration platform [19] Q&A Session Summary Question: Context on 2025 outlook by application and geography - Management indicated that leading-edge foundry logic is expected to grow strongly in Q2, offsetting a more measured investment level in ICAPS nodes [40][43] Question: Expectations for semiconductor systems growth - Management stated that growth in leading-edge is anticipated, but visibility on ICAPS remains uncertain [51][52] Question: Impact of China on AGS growth - Management clarified that approximately half of the impact from China will be felt in Q2, with expectations for AGS to grow at low double digits thereafter [56][57] Question: Gross margin expectations - Management reiterated a baseline gross margin of around 48%, with expectations for pricing to reflect the increasing value of solutions [61][62] Question: Confidence in customer forecasts - Management expressed high confidence in forecasts for larger customers, particularly in leading logic and DRAM segments, while noting lower visibility in ICAPS [124][125] Question: Expectations for DRAM growth excluding China - Management indicated continued momentum in DRAM, particularly in advanced compute performance systems [110][112] Question: Gate-all-around revenue expectations - Management maintained expectations for gate-all-around revenue to double in 2025, with continued growth anticipated beyond that [117][120]

Applied Materials, Inc. (NASDAQ: AMAT ) reported Q1 earnings after the close Thursday, which was followed by a selloff of around 5% as I write this. The company turned in solid growth for the current quarter, achieved significant marginTo follow me click the "Follow" button! (Easy right?) Hi there, thanks for coming to my profile page! My name is Kumquat Research (but you can call me Jeremy) and I've been writing for Seeking Alpha on and off for going on ten years now, beginning with my inaugural published ...

Applied Materials reported record revenue in its fiscal 2025 first quarter, but a significant overseas tax charge impacted its bottom line.Applied Materials (AMAT 1.87%), a leader in semiconductor manufacturing equipment, announced its fiscal 2025 first-quarter earnings on Feb. 13. The company reported record revenue of $7.17 billion, a 7% increase from the same period last year. That was just above the midpoint of management's guidance range of $6.75 billion to $7.55 billion. Non-GAAP earnings per share (E ...

For the quarter ended January 2025, Applied Materials (AMAT) reported revenue of $7.17 billion, up 6.8% over the same period last year. EPS came in at $2.38, compared to $2.13 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $7.15 billion, representing a surprise of +0.18%. The company delivered an EPS surprise of +4.39%, with the consensus EPS estimate being $2.28.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall St ...

First Quarter Fiscal 2025 Earnings Presentation February 13, 2025 Applied Materials External Forward-Looking Statements This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our development of new produ ...

Exhibit 99.1 Investor Relations Contact: Liz Morali (408) 986-7977 liz_morali@amat.com | | | Q1 FY2025 | | Q1 FY2024 | Change | | --- | --- | --- | --- | --- | --- | | | | | | (In millions, except per share amounts and percentages) | | | Net revenue | $ | 7,166 | $ | 6,707 | 7% | | Gross margin | | 48.8 % | | 47.8 % | 1.0 point | | Operating margin | | 30.4 % | | 29.3 % | 1.1 points | | Net income | $ | 1,185 | $ | 2,019 | (41)% | | Diluted earnings per share | $ | 1.45 | $ | 2.41 | (40)% | | Non-GAAP Resul ...