Why This Is the Best Quarter Applied Materials Has Ever Had
Applied Materials, Inc. (NASDAQ: AMAT) reported its fiscal third-quarter financial results after the markets closed on Thursday. The general consensus after seeing these results is that Applied Materials had its best quarter in the history of the company hitting both…
Applied Materials, Inc. (NASDAQ: AMAT) reported fiscal third-quarter financial results after markets closed Thursday. The general consensus after seeing these results is that Applied Materials had its best quarter in the history of the company, hitting both record earnings and record revenues among other highlights.
The company said that it had $0.86 in earnings per share (EPS) and $3.74 billion in revenue, compared with consensus estimates from Thomson Reuters that called for $0.84 in EPS and $3.69 billion in revenue. The same period from last year had $0.50 in EPS and $2.82 billion in revenue.
During the quarter, Applied Materials grew net sales by 33% and increased gross margin by 3.1 points to 45.4%. Not to mention the company also grew operating margin by 6.2 points to 27.3%.
[nativounit]
In terms of the outlook for the fourth quarter, management expects to see EPS in the range of $0.86 to $0.94 and revenues in the range of $3.85 billion to $4.0 billion. There are consensus estimates calling for $0.82 in EPS and $3.71 billion in revenue for the coming quarter.
On the books, cash, cash equivalents, and short-term investments totaled $7.23 billion at the end of the quarter, compared with $3.75 billion at the end of the previous fiscal year.
Gary Dickerson, President and CEO, commented:
With revenue and profits at all-time highs, Applied has tremendous momentum and a very positive outlook for the future. Our markets are growing with a broader set of demand drivers, and the breadth of Applied’s technology enables us to play a larger and more valuable role advancing the innovation roadmap in semiconductor and display.
Shares of Applied Materials closed Thursday down 3% at $43.12, with a consensus analyst price target of $52.23 and a 52-week range of $27.00 to $47.86. Following the release of the earnings report, the stock was initially up over 3% at $44.50 in the after-hours trading session.
[wallst_email_signup]
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
