Applied Materials Q4 Revenue Preview: China’s Observation China Revenue – Application Mat (NASDAQ: AMAT)

Applied Materials, Inc. amat It plans to report its first-quarter earnings after Thursday’s end. This is the expectation in the report.

What to watch: Since AI-driven demand can reflect its revenue, the company’s semiconductor systems segment will be monitored.

Wall Street China revenue from Applied Materials, which fell to 30% in the previous quarter, down from 32% in the previous quarter, and 40% declined before that.

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Needham Analyst Charles Shi Noting that the company’s first-quarter China revenue was approximately $2.14 billion, “but it still meaningfully lowered the average operating rate from the fourth quarter of 2023 to the second quarter of 2024, which is a meaningful step forward. Additional .

“In the long run, management believes that WFE (wafer manufacturing equipment) strength is supported by strong Chinese demand in 2023 and may decline and normalize to 15%,” Shi further wrote.

Investors will seek growth in non-GAAP gross margins, which the material directed it to 48.4% in the first quarter, up from 47.5% in the previous quarter.

Stifel analyst Brian Chin Maintained a buy rating for Applied Materials shares, but lowered its target from $250 to $235 on Tuesday, entering the first quarter prints.

According to Benzinga Pro estimates, analysts expect the company’s quarterly earnings of $2.29 per share to be $7.14 billion. It should be noted that in each of the last ten quarters, applied material beat consensus estimates at the top and bottom lines.

AMAT Price Action: Applied Materials stock ended Wednesday’s meeting 1.26% to $180.89, according to Benzinga Pro.

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