Applied Materials Profits Beat Expectations, Raises Guidance

Chip equipment supplier Applied Materials $AMAT reported better than expected fiscal third-quarter profit and revenue after the market close Thursday. The stock raised its Guidance sending the stock up 4% in the after-hours market. Record revenue in semi systems and AGS with strong orders and growing backlog.

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Earnings

AMAT fiscal third-quarter profit and revenue adjusted earnings was $1.94 a share on sales of $6.52 billion. Wall Street had expected earnings of $1.78 a share on sales of $6.27 billion, according to FactSet. On a year-over-year basis, Applied Materials earnings rose 2% as revenue increased 5%. A year earlier, Applied Materials earned $1.90 a share on revenue of $6.19 billion.

Highlights

Applied Materials Q3 22 Earnings:

  • Q3 Adj. EPS $1.94 (est $1.79)
  • Q3 Revenue $6.52B (est $6.26B)
  • Sees Q4 Adj. EPS $1.82-2.18 (est $1.94)
  • The company generated $1.47 billion in cash from operations and returned $1.23 billion to shareholders including
  • $1.00 billion in share repurchases and $225 million in dividends

Outlook

“Applied Materials delivered record quarterly revenue, yet ongoing supply-chain challenges constrained our ability to meet demand, and our top priority remains increasing shipments to our customers,” Dickerson said. “We feel confident in our ability to navigate macroeconomic headwinds and remain very positive about the long-term strength of the semiconductor market and our outsized growth opportunities.”

For the fiscal fourth quarter, Applied Materials executives guided for adjusted earnings of $1.82 to $2.18 a share on sales of $6.25 billion to $7.05 billion. Analysts on average were expecting adjusted earnings of $1.94 a share on sales of $6.55 billion, according to FactSet.

Source: AMAT; AlphaStreet

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