Applied Materials Stock Hits New 52-week High on Solid Q1 Results and Outlook

Applied Materials Inc. (NASDAQ:AMAT), founded in 1967, initially started operating as a manufacturer of chemical vapor disposition reactors for building semiconductors. The company went public in 1972 and stepped into new areas but kept its focus on semiconductor manufacturing equipment. Today, it is a leading producer of equipment used to manufacture semiconductor chips, flat panel displays, and solar products.

The  chip-gear maker came into the limelight on Thursday evening after delivering strong financial results for the first quarter along with an upbeat outlook. Applied Materials reported earnings of $1.13 billion, or $1.22 per share for the three months ended Jan. 31, significantly higher than 96 cents per share in the comparable period of 2020. Excluding restructuring and other expenses, the company posted an adjusted profit of $1.39 per share, as compared to 98 cents per share in the year-ago quarter.

Revenue came in at $5.16 billion, translating to a surge of 24 percent from $4.16 billion in the same period, a year earlier. Analysts on average were expecting the company to report earnings of $1.28 per share and revenue of $4.98 billion. The strong quarterly performance was mainly helped by higher demand for the company’s semiconductor manufacturing equipment.

Speaking on the quarter, CEO Gary Dickerson said in a statement, “In our first fiscal quarter, we’ve seen a continued acceleration of demand in our semiconductor business as major macro and industry trends fuel increasing consumption of silicon across a wide range of markets and applications.”

Looking forward, Applied Materials expects adjusted profit in the range of $1.44 per share to $1.56 per share for the second quarter, well above the consensus forecast of $1.28 per share. Revenue for the current quarter is expected to come between $5.19 billion and $5.59 billion, versus analysts’ average estimate of $4.96 billion.

Applied Materials shares are trading higher in the mid-day trading Friday on a massive volume. At 12:58 PM, ET, the stock jumped 6.19 percent to $120.45 on a volume of about 13 million shares. Over the past year, AMAT’s share price has climbed nearly 80 percent, including today’s gain.