Semiconductor machinery manufacturer Applied Materials (NASDAQ: AMAT) will be reporting results tomorrow afternoon. Here’s what to expect.

Applied Materials beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $6.78 billion, up 5.5% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates.

Is Applied Materials a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Applied Materials’s revenue to grow 3.7% year on year to $6.97 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.19 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Applied Materials has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.1% on average.

Looking at Applied Materials’s peers in the semiconductor manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 3%, and Lam Research reported revenues up 19.7%, topping estimates by 2.7%. Teradyne traded down 11.1% following the results while Lam Research was up 4.8%.

Read our full analysis of Teradyne’s results here and Lam Research’s results here.

Inflation fears have put pressure on growth stocks, and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share prices down 3.4% on average over the last month. Applied Materials is down 2.4% during the same time and is heading into earnings with an average analyst price target of $229.01 (compared to the current share price of $186.50).

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