What To Watch For In Applied Material’s Q3 Earnings

by Trefis Team
Applied Materials
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After a strong performance over the past few quarters, we expect Applied Materials (NYSE:AMAT) to post another strong quarter when it reports its fiscal Q3 2017 earnings on August 18th. The company expects revenue between $3.60-3.75 billion, with the midpoint indicating over 30% year-over-year growth. The company has been able to sustain growth in both its top line and bottom line due to favorable industry trends. Applied’s stock price has more than doubled over the year, indicating strong investors’ belief in the company’s growth outlook. Driven by multi-year inflections and new demand drivers, the company’s orders and earnings in Q2 2017 were at an all-time high. We expect this growth momentum to continue in the near term.

Supported by significant developments in emerging technologies such as the Internet of Things (IoT), virtual reality, augmented reality, big data, artificial intelligence, and self-driving cars in 2016, the company has immense growth potential going forward. These areas have the potential to significantly increase semiconductor spending and drive the advances in silicon technology in the future. Additionally, the company also believes that capital equipment spending has become less cyclical and more normalized over time, due to increasing demand in these areas.

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