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

Applied Materials met analysts’ revenue expectations last quarter, reporting revenues of $7.17 billion, up 6.8% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EPS estimates but revenue guidance for next quarter meeting analysts’ expectations.

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 7.2% year on year to $7.13 billion, improving from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $2.31 per share.

Analysts covering the company have generally 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 2.4% on average.

Looking at Applied Materials’s peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Nova delivered year-on-year revenue growth of 50.5%, beating analysts’ expectations by 1.2%, and FormFactor reported revenues up 1.6%, topping estimates by 0.9%. Nova traded down 9% following the results while FormFactor was up 3.1%.

Read our full analysis of Nova’s results here and FormFactor’s results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 26.5% on average over the last month. Applied Materials is up 19.4% during the same time and is heading into earnings with an average analyst price target of $200.11 (compared to the current share price of $173.71).

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