In the fiscal 2021 first quarter ended Jan. 31, revenue registered $5.16 billion, up 24% from $4.16 billion in the year-earlier quarter. The latest figure topped the FactSet analyst consensus of $4.98 billion.
Adjusted net income hit $1.39, beating the analyst consensus of $1.28.
Shares of the Santa Clara, Calif., company recently traded at $120.07, up 5.9%. They'd soared 69% over the six months through Thursday amid strong chip demand during the COVID pandemic. That compares with a 24% climb for the Nasdaq Composite during that period.
As for the analysts, Cowen lifted its price target to $140 from $120 and affirmed its outperform rating. “We believe there is still upside to future earnings potential ($7-plus) due to industry trends, product positioning, Intel (INTC) - Get Report insourcing, buybacks and Kokusai accretion,” Cowen analysts wrote.
“AMAT's semiconductor systems business grew over 25% in calendar year 2020, driven by product diversity and market share gains. This momentum is expected to continue into 2021.”
Further, “management expects wafer [fabrication] spending growth to be over 15%,” Cowen said. “While the display outlook is unchanged (similar to fiscal year 2020 levels), the overall company's margin structure looks robust.”
Among other analysts, J.P. Morgan lifted its share-price target to $146 from $88, Deutsche Bank to $140 from $125, Barclays to $125 from $115, Mizuho to $130 from $96, KeyBanc to $144 from $104 and Needham to $130 from $110.