Applied Materials (AMAT) Reports 5% Revenue Increase in Q3 2024

By Bobby Samwell • Friday, August 16 08:05 • Permanent Link

Applied Materials, Inc. (NASDAQ: AMAT) has reported its third quarter results for the fiscal year 2024, with some significant changes from the previous year. The company's revenue for the quarter stood at $6.78 billion, marking a 5% increase from the same period last year.

On a GAAP basis, the company's operating margin was 28.7%, up 0.7 points from the previous year, while the non-GAAP operating margin increased by 0.5 points to 28.8% year over year.

The GAAP earnings per share (EPS) for the quarter were $2.05, reflecting an 11% increase from the previous year. Meanwhile, the non-GAAP EPS saw an even larger increase of 12% year over year, reaching $2.12.

The company also generated $2.39 billion in cash from operations and distributed $1.19 billion to shareholders, including $861 million in share repurchases and $331 million in dividends.

Looking at the business segment performance, the Semiconductor Systems segment saw a 5% increase in net revenue, reaching $4.924 billion. The Foundry, Logic, and Other categories accounted for 72% of this revenue, while the Operating Margin for this segment improved to 34.8% from 33.5% in the previous year.

In the Applied Global Services segment, net revenue increased to $1.580 billion, up from $1.464 billion in the previous year. The operating margin for this segment also improved to 29.6% from 27.3% in the third quarter of the previous fiscal year.

However, the Display and Adjacent Markets segment saw a decrease in net revenue to $251 million from $235 million in the third quarter of the previous fiscal year, and the operating margin for this segment decreased to 6.4% from 13.6% in the previous year.

Looking ahead, for the fourth quarter of fiscal 2024, Applied Materials expects net revenue to be approximately $6.93 billion, plus or minus $400 million. The non-GAAP diluted EPS is expected to be in the range of $2.00 to $2.36.

The market has reacted to these announcements by moving the company's shares 5.1% to a price of $211.83. Check out the company's full 8-K submission here.

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