Applied Materials Inc. (AMAT) – Slowdown influencing expansion

Applied Materials Inc. (AMAT) Equity Report (Q3FY23)

Stock Performance: Applied Materials stock price showed a downtrend in the past 3-month period and gave negative returns of -5%. The stock price increased by 46% in the past 1 year. The stock has a 52-week high of 155.26 and its 52-week low is $92.10.

Q3FY23 Performance: Applied Materials recorded $6.43bn in revenue, a 1% Y/Y decline that met expectations. Their non-GAAP gross margins slightly exceeded predictions, with operating expenses slightly below. Despite a 2% dip in non-GAAP EPS to $1.90, the figure approached the upper end of guidance.

Guidance: For Q4FY23, AMAT expects company revenue to be $6.51bn, plus or minus $400mn, Non-GAAP EPS of $2 plus or minus $0.18. Within the guidance, AMAT expects semi-systems revenue to be around $4.75bn and DRAM revenue to be up by around $500mn Q/Q, primarily driven by trailing edge shipments.

Highlights

In 2018, Applied Materials anticipated the union of IoT and AI propelling semiconductor growth. Now, IoT and AI’s impact is profound, driving advancements across sectors. Smarter edge devices, prevalent in consumer products, automotive, and infrastructure, have surged, fostering vast data generation. In FY30, forecasts estimate the total addressable market will grow to $1tn.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 35

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