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Compared to Estimates, Applied Materials (AMAT) Q2 Earnings: A Look at Key Metrics

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For the quarter ended April 2023, Applied Materials (AMAT - Free Report) reported revenue of $6.63 billion, up 6.2% over the same period last year. EPS came in at $2.00, compared to $1.85 in the year-ago quarter.

The reported revenue represents a surprise of +3.65% over the Zacks Consensus Estimate of $6.4 billion. With the consensus EPS estimate being $1.84, the EPS surprise was +8.70%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Applied Materials performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Sales- Corporate and Other: $57 million versus $43.81 million estimated by three analysts on average.
  • Net Sales- Semiconductor Systems: $4.98 billion compared to the $4.85 billion average estimate based on three analysts. The reported number represents a change of +11.6% year over year.
  • Net Sales- Display and Adjacent Markets: $168 million compared to the $160.13 million average estimate based on three analysts. The reported number represents a change of -55.9% year over year.
  • Net Sales- Applied Global Services: $1.43 billion versus $1.34 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +3.3% change.
View all Key Company Metrics for Applied Materials here>>>

Shares of Applied Materials have returned +13.9% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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