Applied Materials Inc. (NASDAQ: AMAT) has reported its second quarter earnings and the headline summaries may have caused some confusion. The chip equipment giant reported $0.09 EPS, but this was really $0.18 EPS on an adjusted basis on $2.19 billion in sales. Thomson Reuters had estimates of $0.12 EPS on $1.97 billion in sales.
It may sound high, but Applied has reported a 26% sequential rise in new orders to $2.01 billion. The company is putting non-GAAP earnings guidance ahead at $0.20 to $0.28 EPS versus a consensus of $0.16 EPS from Thomson Reuters.
Cash was returned to holders as well with some $104 million paid out in cash dividends during the quarter and it used $200 million to repurchase over 18 million shares of the company’s common stock. Another milestone was the closing of its Varian acquisition.
Applied Materials closed up 2.4% at $13.21 and shares are now up 3.1% at $13.73. Its 52-week trading range is $9.70 to $16.93. This is one of those reports where the good gets better.
JON C. OGG
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