Applied Materials Inc. (AMAT) is a provider of manufacturing equipment, services, and software to the semiconductor, display, and related industries. With a market cap of $150.1 billion, Applied Materials operates through Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets segments.\n\nThe tech giant is expected to announce its third-quarter results on Thursday, Aug. 21. Ahead of the event, analysts expect AMAT to report a profit of $2.34 per share, up 10.4% from $2.12 per share reported in the year-ago quarter. Furthermore, the company has surpassed the Street’s bottom-line projections in each of the past four quarters.\n\nFor the full fiscal 2025, analysts expect AMAT’s EPS to come in at $9.47, up a notable 9.5% from $8.65 reported in fiscal 2024. In fiscal 2026, its earnings are expected to further grow 5.6% year-over-year to $10 per share.\n\nAMAT’s stock prices have dropped 8.9% over the past 52 weeks, notably underperforming the S&P 500 Index’s ($SPX) 17.3% surge and the Technology Select Sector SPDR Fund’s (XLK) 21.1% returns during the same time frame.\n\nDespite delivering record earnings, Applied Materials’ stock prices dropped 5.3% in the trading session after the release of its Q2 results on May 15. The company’s topline for the quarter increased 6.8% year-over-year to $7.1 billion, falling short of the Street expectations by a small margin, which increased investor skepticism, which was already heightened due to concerns over the impact of potential tariffs on the semiconductor industry.\n\nNonetheless, the company’s overall performance remained more than impressive, its adjusted EPS increased 14.4% year-over-year to $2.39, beating the consensus estimates by 3.5%. Further, its operating cash flows surged 12.9% year-over-year to $1.6 billion.\n\nThe consensus view on AMAT stock is optimistic, with a consensus “Moderate Buy” rating overall. Of the 34 analysts covering the stock, opinions include 22 “Strong Buys,” three “Moderate Buys,” and nine “Holds.” Its mean price target of $205.68 suggests a 9.3% upside potential from current price levels.\n\nOn the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com.

Applied Materials' Quarterly Earnings Preview: What You Need to Know

Applied Materials Inc. (AMAT) is expected to report third-quarter earnings of $2.34 per share, a 10.4% increase from the previous year. Its stock underperformed the S&P 500 and Technology Select Sector SPDR Fund over the past year. Analysts project full fiscal 2025 EPS of $9.47 and fiscal 2026 EPS of $10 per share. The company’s Q2 results fell short of expectations, but adjusted EPS and operating cash flows exceeded forecasts.