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TMTB EOD: AMAT First take; Market Recap
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TMTB EOD: AMAT First take; Market Recap

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TMT Breakout
Nov 16, 2023
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TMTB EOD: AMAT First take; Market Recap
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AMAT – Numbers look solid (revs/eps beat and EPS guide above) but there is a reuters article saying AMAT is facing a criminal investigation for potentially evading export restrictions by selling equipment to SMIC (link here), which is hitting the stock.

“The largest U.S. semiconductor equipment maker is being probed by the Justice Department for sending hundreds of millions of dollars of equipment to SMIC without export licenses, one source, who requested anonymity because of the sensitivity of the investigation, said. Reuters is reporting details of the probe for the first time.”

Details:

EPS $2.12 vs. EST $1.99
Net sales $6.72B, -0.4% y/y, EST $6.54B
Semiconductor Systems net sales $4.88B, -3.1% y/y, EST $4.77B
Applied Global Services net sales $1.47B, +3.6% y/y, EST $1.44B
Display and Adjacent Markets net sales $298M, +19% y/y, EST $280.3M
ADJ gross margin 47.3% vs. 46% y/y, EST 47%

China revenue spiked 44% of the mix vs 20% a q ago so investors will question sustainability. 

FORECAST: Q1
Sees ADJ EPS $1.72 to $2.08, EST $1.84
Rev of $6.47B vs $6.33

Market Recap:

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