SANTA CLARA – Applied Materials (NASDAQ:AMAT), a leading semiconductor equipment manufacturer, reported its fourth-quarter earnings for fiscal year 2023, showcasing resilience in a challenging market. The company announced a steady revenue of $6.72 billion, maintaining last year's level and surpassing analysts' expectations by 3.4%. The non-GAAP earnings per share (EPS) also saw an increase to $2.12 from $2.03 the previous year, beating forecasts of $1.99.
Despite achieving these solid results, the company's stock experienced a decline of 6.5% in after-hours trading on Thursday, dropping to $144.7 per share. This reaction came even as Applied Materials provided revenue guidance for Q1 2024 at the midpoint of $6.47 billion, which is 1.5% above analyst estimates.
The company's financial health remains robust with a market capitalization of $130 billion and a cash balance of $6.87 billion. However, the free cash flow saw a significant reduction from the prior quarter, down by 46.5% to $1.25 billion.
Applied Materials has been outpacing the wafer fabrication equipment market for five consecutive years, despite anticipating a year-over-year revenue decline of 4% in the next quarter and analysts predicting a slight 0.7% decrease over the following twelve months.
Wall Street analysts remain optimistic about Applied Materials' prospects, with a strong buy consensus featuring 18 Buys, three Holds, and one Sell recommendation. The average price target stands at $162.52 per share, suggesting a potential upside.
Investors are closely monitoring the company's progress as it navigates through market fluctuations and maintains its competitive edge in semiconductor systems, applied global services, and display and adjacent markets sectors.
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