Applied Materials Meets Q4 Revenue Expectations, Narrowly Misses Guidance
Revenue: $7.17 Billion (In Line with Estimates)
* 6.8% Year-on-Year Growth
Adjusted EPS: $2.38 (3.7% Beat)
* Surpasses Analyst Expectations
Operating Income: $2.19 Billion (2.9% Beat)
* 30.6% Margin
Q1 2025 Guidance:
* Revenue: $7.1 Billion (0.8% Below Estimates)
* Adjusted EPS: $2.30 (Roughly in Line)
Key Highlights:
* Strong demand for advanced computing and AI development
* Semiconductor industry growth driven by smartphones, PCs, data storage, and emerging technologies
* Impressive long-term sales growth (13% CAGR over 5 years)
* Moderate revenue growth projected for next 12 months (5.9%)
Inventory Management:
* Inventory Days Outstanding (DIO): 136
* 4-day decrease from previous quarter, still below historical average
Investment Implications:
* Market capitalization: $147 billion
* Stock price declined 4.4% following earnings announcement
Conclusion:
Applied Materials performed largely in line with expectations in Q4. While it slightly missed revenue guidance for the next quarter, its strong EPS beat and overall financial health provide a balanced outlook. Investors seeking exposure to the semiconductor industry and AI growth potential may consider further research on Applied Materials for potential investment opportunities.