Utilized Supplies This fall Earnings Preview: Semiconductor Programs, China Revenues On Watch – Utilized Mat (NASDAQ:AMAT)

Utilized Supplies, Inc. AMAT is ready to report its first-quarter earnings after Thursday’s closing bell. This is a have a look at what to anticipate within the report. 

What To Watch: The corporate’s Semiconductor Programs section might be on watch as AI-driven demand might replicate in its revenues. 

Wall Avenue may even be watching Utilized Supplies’ China revenues which fell to 30% within the final quarter, down from 32% within the earlier quarter and 40% earlier than that. 

Learn Extra: File-Excessive Egg Costs Drive Inflation Increased In January

Needham analyst Charles Shi famous that the corporate’s first-quarter China revenues got here in roughly flat at round $2.14 billion, “however nonetheless a significant step down” from the common run charge of $2.9 billion per quarter between the fourth quarter of 2023 to the second quarter of 2024, he added.

“Over the long term, administration sees that WFE (wafer fabrication gear) depth, propped up by the sturdy China demand of 18% in 2023, might decline and normalize to round 15%,” Shi additional wrote.

Buyers will search for development in non-GAAP gross margins which Utilized Supplies guided to 48.4% for the primary quarter, up from 47.5% within the earlier quarter. 

Stifel analyst Brian Chin maintained a Purchase score on Utilized Supplies shares however lowered the worth goal from $250 to $235 on Tuesday heading into the first-quarter print. 

Based on estimates from Benzinga Professional, analysts anticipate the corporate to report quarterly earnings of $2.29 per share on income of $7.14 billion. It must be famous that Utilized Supplies has beat consensus estimates on the highest and backside strains in every of the final ten consecutive quarters. 

AMAT Worth Motion:  Based on knowledge from Benzinga Professional, Utilized Supplies shares ended Wednesday’s session down 1.26% at $180.89. 

Learn Subsequent:

Picture: Shutterstock