Summary
Applied Materials, Inc. (AMAT) reported strong financial results for the third quarter and first nine months of fiscal year 2024. The company demonstrated robust revenue growth and improved profitability, driven by continued strategic investments in semiconductor capital equipment and a growing Applied Global Services segment. Revenue for the quarter reached $6.778 billion, a 5% increase year-over-year, with diluted EPS rising to $2.05. For the nine-month period, revenue was $20.131 billion, up 2% compared to the prior year, and diluted EPS was $6.52, reflecting significant year-over-year growth. The company's Semiconductor Systems segment remains its largest contributor, showing resilience despite shifts in customer spending patterns between foundry/logic and memory technologies. The Applied Global Services segment also exhibited strong growth, driven by service agreements and spare parts demand. While the Display and Adjacent Markets segment saw modest revenue growth, its operating income declined. AMAT's financial health appears strong, with substantial cash and investments, and a commitment to returning capital to shareholders through dividends and share repurchases, alongside continued investment in research and development.
Financial Highlights
58 data points| Revenue | $6.78B |
| Cost of Revenue | $3.57B |
| Gross Profit | $3.21B |
| R&D Expenses | $836.00M |
| Operating Expenses | $1.26B |
| Operating Income | $1.94B |
| Net Income | $1.71B |
| EPS (Basic) | $2.06 |
| EPS (Diluted) | $2.05 |
| Shares Outstanding (Basic) | 826.00M |
| Shares Outstanding (Diluted) | 833.00M |
Key Highlights
- 1Total net revenue for the third quarter of fiscal 2024 was $6.778 billion, an increase of 5% year-over-year.
- 2Diluted earnings per share (EPS) for the third quarter was $2.05, up from $1.85 in the prior year.
- 3Gross margin improved to 47.3% in the current quarter from 46.3% a year ago, driven by lower material, freight, and manufacturing costs.
- 4The Semiconductor Systems segment, the largest revenue contributor, saw a 5% increase in net revenue for the quarter, indicating continued demand for semiconductor manufacturing equipment.
- 5Applied Global Services segment revenue grew by 8% year-over-year, driven by an increase in long-term service agreements and spare parts demand.
- 6The company generated $6.102 billion in cash from operating activities for the first nine months of fiscal 2024, though this was a decrease from the prior year's $7.145 billion.
- 7Applied Materials continues to actively return capital to shareholders, with $863 million in dividends paid and $2.4 billion in stock repurchases during the first nine months of fiscal 2024.