What To Expect As Applied Materials Reports Q3 Earnings?

Applied Materials
AMAT
is expected to publish its Q3 FY’23 results on August 17, reporting on another quarter that is likely to see a slowdown in sales due to potentially weaker demand for equipment from the memory market. We expect revenues for the quarter to decline by about 9.5% year-over-year to about $5.9 billion, slightly below estimates. We expect that earnings will stand at about $1.70 per share. See our analysis of Applied Materials Earnings Preview for a closer look at what to expect when the company reports results.

Semiconductor fabs have been slowing down their budgets for new equipment in recent quarters, following rising supply and easing demand for chips as Covid-19 tailwinds ease for the consumer electronics industry, with sales of laptops, tablets, and smartphones declining versus last year. Although Applied posted a better-than-expected set of results over Q2, due to slightly higher demand from the foundry and logic chip space led by IoT, communications, automotive, power, and sensors markets, the company indicated that demand from memory markets has remained weak as low prices have kept companies from expanding capacity. For Q3, Applied expected its semiconductor systems revenue to come in around $4.5 billion, which is down nearly 5% year over year, with Applied’s global services business to grow by about 1% to $1.43 billion.