Applied Materials’ Q4 Preview Put $10.30 Billion Revenue Estimate in Focus

Applied Materials was scheduled to release fiscal fourth-quarter results after the market closed Nov. 12, with analysts expecting $10.30 billion in revenue and $4.06 per share in non-GAAP diluted earnings.

The estimates implied about 51% revenue growth from $6.80 billion and an 87% increase in earnings per share from $2.17 a year earlier. Both estimates topped the company's guidance midpoint of $10.25 billion in revenue and $4.02 per share; the guidance allowed a $500 million revenue variation and a 20-cent-per-share variation.

The previous quarter provides another point of comparison. Applied Materials recorded $9.115 billion in revenue for the fiscal third quarter ended July 26, up 25% from a year earlier, and reported non-GAAP EPS of $3.50. The company’s third-quarter results and outlook set the baseline for the fourth-quarter forecast.

Applied Materials makes equipment chipmakers use to manufacture semiconductors.

Demand for tools used in leading-edge logic, DRAM and advanced packaging has been linked to artificial intelligence-related chip production. The company’s equipment sales provide a view of chipmakers’ spending on manufacturing capacity.