Chip Equipment Maker Applied Materials Raises Guidance, Delivers Record Revenue

Chip equipment supplier Applied Materials reported better than expected fiscal fourth quarter profit and revenue after the market close Thursday. AMAT reported Record quarterly revenue of $6.75 billion, up 10 percent year over year. The company 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.

AppliedMaterialsmicrochipmanufacturing

Applied Materials Q4 22 Earnings:

Applied Materials reported fiscal fourth-quarter net income of $1.59 billion, or $1.85 a share, on sales of $6.75 billion, up from $6.12 billion a year ago. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $2.03 a share, compared with $1.94 a share in the year-ago period.

Highlights

  • Net income of $1.59 billion
  • Q3 Revenue: $6.75B (exp $6.38B)
  • Adj EPS: $2.03 (exp $1.68)
  • Quarterly GAAP EPS of $1.85 down 2 percent year over year
  • Record non-GAAP EPS of $2.03, up 5 percent year over year, respectively
  • For the year, profit of $6.53 billion, or $7.44 per share.
  • Record annual revenue of $25.79 billion, up 12 percent year over year
  • $857 million in cash from operations
  • Returned $1.72 billion to shareholders including $1.50 billion in share repurchases and $223 million in dividends.

AMAT Stock Market Reaction

  • 108.45▲ 4.00 (+3.83%) After Hours 
  • 104.45USD▼ -51.53 (-33.04%) past year
  • 104.45USD▲ +47.96 (+84.9%) past 5 years

“Applied Materials delivered a strong finish to our fiscal year with record performance, and we remain focused on mitigating supply chain constraints and doing everything possible to meet customer demand,” said Gary Dickerson, President and CEO. “Though we are slowing the rate of spending growth in the near term amid geopolitical and macroeconomic challenges, we are making the strategic investments to win the major technology inflections that will enable Applied to outgrow the semiconductor market.

Outlook

Applied Materials executives forecast fiscal first-quarter earnings of $1.75 to $2.11 a share on revenue of $6.3 billion to $7.1 billion. Analysts had estimated earnings of $1.77 a share on revenue of $6.35 billion for the first quarter.

  • Expected pull-back in overall WFE in 2023
  • Foundry/logic: Leading-edge strong, driven by new technology inflections; ICAPS demand mixed
  • Memory spending expected to be down Y/Y as some customers defer capacity addition

Source: AMAT; AlphaStreet

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