Applied Materials Q3 Earnings Beat Estimates, Guides Higher
Key Takeaways
- Applied Materials (AMAT) reported better-than-expected fiscal third-quarter results.
- The company guided slightly higher than consensus views for the current period.
- Applied Materials is benefiting from strong demand for its semiconductor manufacturing equipment.
Financial Results
Applied Materials reported fiscal third-quarter revenue of $6.75 billion, up 10% year-over-year and ahead of the consensus estimate of $6.67 billion. Net income was $1.6 billion, or $1.86 per share, compared to $1.38 billion, or $1.56 per share, in the year-ago period. Adjusted EPS was $2.03, beating the consensus estimate of $1.98.
Outlook
For the current quarter, Applied Materials guided revenue to be in the range of $6.65 billion to $7.05 billion, slightly above the consensus estimate of $6.64 billion. Adjusted EPS is expected to be in the range of $1.87 to $2.11, compared to the consensus estimate of $1.98.
Analyst Commentary
Analysts were generally positive on Applied Materials' results and outlook. "AMAT continues to benefit from strong demand for its semiconductor manufacturing equipment," said Stifel analyst Patrick Ho. "The company's guidance for the current quarter was also encouraging, indicating that the demand environment remains strong."
Conclusion
Applied Materials' strong fiscal third-quarter results and positive outlook indicate that the company is well-positioned to benefit from the ongoing growth in the semiconductor industry. The company's leading market share in semiconductor manufacturing equipment, combined with its strong financial performance, make it a compelling investment for investors looking to gain exposure to this growing market.
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