Applied Materials, Inc. (NASDAQ:AMAT) reported better-than-expected results for its third quarter on Thursday.

Applied Materials reported third-quarter revenue of $6.78 billion, beating the consensus estimate of $6.673 billion. The chip equipment company reported adjusted earnings of $2.12 per share, beating analyst estimates of 2.02 per share.

"Applied Materials is delivering strong results in 2024 with record revenues in our fiscal third quarter and earnings towards the high end of our guided range," said Gary Dickerson, president and CEO of Applied Materials. "The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term."

The company said it anticipates fourth-quarter revenue of $6.53 billion, plus or minus $400 million, versus estimates of $6.91 billion. The company expects fourth-quarter adjusted earnings to be between $2 and $2.36 per share, versus estimates of $2.14 per share

Applied Materials shares gained 5.1% to close at $211.83 on Thursday.

These analysts made changes to their price targets on Applied Materials following earnings announcement.

• Morgan Stanley analyst Joseph Moore maintained the stock with an Equal-Weight and raised the price target from $223 to $224.
• JP Morgan analyst Harlan Sur maintained the stock with an Overweight and raised the price target from $240 to $250.
• Needham analyst Charles Shi reiterated Applied Materials with a Buy and maintained a $260 price target.

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