Applied Materials (AMAT) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - The market anticipates that Applied Materials (AMAT) will report a year-over-year increase in earnings and revenues for the quarter ended April 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $2.31 per share, reflecting a year-over-year increase of +10.5$7.12 billion, up 7.1% from the previous year [3]. - The consensus EPS estimate has been revised 0.23% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that a positive Earnings ESP reading indicates a likely earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [5][8]. - For Applied Materials, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.94% [10][11]. Historical Performance - In the last reported quarter, Applied Materials exceeded the expected earnings of $2.28 per share by delivering$2.38, resulting in a surprise of +4.39% [12]. - The company has beaten consensus EPS estimates in all of the last four quarters [13]. Conclusion - While an earnings beat is a positive indicator, other factors can influence stock performance, making it essential to consider the broader context [14][16].