Send me real-time posts from this site at my email
Motley Fool

Why Applied Materials Shares Are Soaring Today

What happened

Shares of Applied Materials (NASDAQ: AMAT) jumped as much as 9.7% higher on Friday morning, driven by an impressive earnings report. The stock had settled down at a calmer 8.1% gain at 10:45 a.m. EST.

So what

In the first quarter of fiscal year 2021, Applied Materials' net sales rose 24% year over year to $5.16 billion. Adjusted earnings jumped from $0.98 to $1.39 per diluted share. The Street consensus had pointed to earnings near $1.28 per share on sales in the neighborhood of $4.97 billion. The engineered materials expert also provided second-quarter guidance well above analyst estimates.

Image source: Getty Images.

Now what

Applied Materials' strong sales rested on "acceleration of demand" for the company's semiconductor materials.

"We are seeing a diverse combination of macro and technology factors fueling very strong and sustainable demand for semiconductors," CEO Gary Dickerson said on the earnings call. "As the world continues to navigate the current challenges and prepares for a post-pandemic era, the digital transformation of the economy is being accelerated."

Based on these positive market trends, Dickerson expects that Applied Materials' good times will keep rolling for the foreseeable future. It's no surprise to see this stock surging to fresh all-time highs today.

10 stocks we like better than Applied Materials
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Applied Materials wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of November 20, 2020

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool recommends Applied Materials. The Motley Fool has a disclosure policy.


Source

Popular posts

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue