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Applied Materials Posts Mixed Earnings Report

Revenue and adjusted profit surpassed analyst expectations, but GAAP profit trailed analysts' forecasts.
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Applied Materials  (AMAT)  earnings report after the bell Thursday was mixed compared to analysts’ expectations.

In the fiscal 2021 second quarter ended May 2, AMAT posted revenue of $5.58 billion, soaring 41% from $3.96 billion last year. The FactSet analyst consensus called for $5.41 billion in the latest quarter.

Net income registered $1.33 billion, or $1.43 per share, in the latest quarter, up from $755 million, or 82 cents a share, a year ago. The analyst consensus called for $1.49 a share in the latest quarter.

Adjusted profit hit $1.63 a share in the latest quarter, up from $0.89 a year earlier and above analysts’ forecast of $1.51.

AMAT recently stood at $128.13, down 1.67%, and has eased 0.4% over the last month amid the global chip shortage. founder Jim Cramer discussed his thoughts about Applied Materials Monday. On May 4, he said, "This is the stock to watch. They are geniuses.”

In April, several Wall Street analysts lauded the company’s guidance and potential, following a company presentation.

Mizuho Securities affirmed a buy rating on the Santa Clara, Calif., company while raising its price target to $155 a share from $130. Mizuho called the company's guidance "potentially conservative" and said it was well-positioned for the long term.

Needham also maintained its buy rating while raising its price target to $153 from $130. The firm called AMAT's outlook "prudent" and a "blessing in disguise," as it showed the company was confident "in a much less volatile and a more steadily growing" wafer-fabrication-equipment industry.