Applied Materials reported Q3 adj. EPS of $1.06 versus the consensus estimate of 95c. The company reported Q3 revenue of $4.4B versus the consensus estimate of $4.18B.
“Thanks to the hard work and agility of our employees and suppliers, Applied Materials is operating at pre-COVID levels of productivity and delivering outstanding financial results,” said Gary Dickerson, president and CEO. “By addressing our customers’ highest value problems, Applied is outperforming today and is positioned to grow faster than our markets over the next several years.”
Applied Materials sees Q4 EPS of $1.11-$1.23 versus the consensus estimate of $1.02. The company sees Q4 revenue of $4.4B-$4.8B versus the consensus estimate of $4.36B.
DA Davidson analyst Thomas Diffely raised the firm’s price target on Applied Materials to $70 from $55 but keeps a Neutral rating on the shares.
The company posted a “solid” Q3 earnings beat and raise for FY20 thanks to its “execution” and “strong” demand environment, the analyst tells investors in a research note. Diffely adds that with supply disruptions mitigated, the company is working through a “record backlog” and expects its momentum to continue for the rest of the year. The analyst further states however that with the stock price offering only 7% upside to his price target, a Neutral rating is warranted.
B. Riley FBR analyst Craig Ellis raised the firm’s price target on Applied Materials to $82 from $72 and keeps a Buy rating on the shares after the company’s results and outlook beat consensus expectations. The quarterly report affirms his bullish thesis, said Ellis, who sees upside potential in 2021 if Memory capacity spending returns. Although this was not in Applied Materials’ outlook, he believes it is likely, the analyst added.
Craig-Hallum analyst Christian Schwab raised the firm’s price target on Applied Materials to $83 from $79 and keeps a Buy rating on the shares following better-than-expected Q3 results and Q4 guidance that was ahead of expectations. The analyst expects the strong semiconductor capital equipment spending environment to continue.
Deutsche Bank analyst Sidney Ho raised the firm’s price target on Applied Materials to $75 from $70 and keeps a Buy rating on the shares after the company reported “strong” Q3 results and Q4 guidance. He is “modestly more positive” on the near-term outlook, especially in foundry and logic, following the company’s earnings report, Ho tells investors.
Susquehanna analyst Mehdi Hosseini raised the firm’s price target on Applied Materials to $85 from $74 and keeps a Positive rating on the shares. The analyst raised his estimates following solid Q3 results. He believes its Kokusai acquisition and a stronger second half of 2021 are catalysts that can help the company on the path to $6 of earnings power.