Applied Materials (AMAT) Surpasses Q2 Earnings Estimates

Group 1: Earnings Performance - Applied Materials reported quarterly earnings of $2.39 per share, exceeding the Zacks Consensus Estimate of $2.31 per share, and up from $2.09 per share a year ago, representing an earnings surprise of 3.46% [1] - The company posted revenues of $7.1 billion for the quarter ended April 2025, slightly missing the Zacks Consensus Estimate by 0.28%, compared to $6.65 billion in the same quarter last year [2] - Over the last four quarters, Applied Materials has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Applied Materials shares have increased approximately 7.1% since the beginning of the year, outperforming the S&P 500's gain of 0.2% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $2.32 on revenues of $7.21 billion, and for the current fiscal year, it is $9.36 on revenues of $28.81 billion [7] Group 3: Industry Context - The Electronics - Semiconductors industry, to which Applied Materials belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]