Will Applied Materials Q2 earnings beat amid strong demand?
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Applied Materials (NASDAQ:AMAT) is scheduled to announce Q2 earnings results on Thursday, May 19, after market close.
The consensus EPS estimate is $1.90 (+16.6% Y/Y) and the consensus revenue estimate is $6.35B (+13.8% Y/Y).
Over the last 2 years, AMAT has beaten EPS estimates 88% of the time and revenue estimates 75% of the time.
Over the last 3 months, EPS estimates have seen 1 upward revision and 21 downward. Revenue estimates have seen 3 upward revisions and 16 downward.
Investors will look out for demand outlook as well as commentary on integrated circuit manufacturing slowdown in China and the country's self-reliance plans.
ASML (ASML) rose on stronger-than-expected results and upbeat forecast, lifting stocks of chip equipment makers, including AMAT.
Micron Technology (MU) gained after posting better-than-expected earnings and outlook, which Mizuho Securities said was a positive read-through for stocks such as AMAT. 
Global chip sales stood at $151.7B in Q1, up 23% Y/Y but down 0.5% from Q4. Evercore said growth was below seasonal on a sequential basis, but Y/Y growth is "broad-based, supported by favorable pricing trends". 
SA contributor JR Research revised AMAT's rating to Hold, given its weaker technical outlook, impacting its risk/reward profile.
AMAT rose after its Q1 earnings topped Street view. It projected Q2 adj. EPS of $1.75-$2.05 and net sales of ~$6.35B, +/- $300M. This includes impact of supply chain challenges. 

Recent news:

According to a recent The Information report citing sources, AMAT will likely be among the most affected if the U.S. Dept. of Commerce bans companies from selling advanced equipment to make semiconductors to Chinese firms.
AMAT raised its quarterly dividend by 8.3% and announced a new $6B stock buyback program.
AMAT named former Xilinx CFO Brice Hill as its new finance chief.