Why Applied Materials Earnings Are So Great Despite Friday’s Headwinds?
Applied Materials released better than expected fiscal second-quarter financial results after the markets closed on Thursday.
Applied Materials Inc. (NASDAQ: AMAT | AMAT Price Prediction) released its fiscal second-quarter financial results after the markets closed on Thursday. The company said that it had $0.70 in earnings per share (EPS) and $3.54 billion in revenue, compared with consensus estimates that called for $0.66 in EPS and $3.48 billion in revenue. The same period of last year reportedly had EPS of $1.19 on $4.57 billion in revenue.
During the most recent quarter, net revenues had dropped about 23% year to date. The company noted a gross margin of 43.5%, down from 45.9% in the same period of last year.
The company returned $814 million to shareholders, including $625 million in share repurchases and dividends of $189 million. As announced on March 8, the board of directors approved a 5% increase in the quarterly cash dividend to $0.21 from $0.20 per share.
Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.67 to $0.75 and net sales of $3.525 billion, give or take $150 million. The consensus estimates are $0.69 in EPS and $3.51 billion in revenue for the quarter.
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Gary Dickerson, president and CEO, commented:
In the second fiscal quarter Applied Materials delivered results toward the top-end of our guidance range, reflecting solid execution across the company in a business environment that remains challenging. Looking ahead, we maintain a positive view of our markets as powerful new demand drivers for semiconductors and displays take shape, creating tremendous opportunities for Applied Materials.
Shares of Applied Materials closed Thursday at $41.66, in a 52-week range of $28.79 to $53.23. The consensus price target is $47.75. Following the announcement, the stock was up about 3% at $42.80 in early trading indications Friday.
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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.
