Applied Materials, Inc. (NASDAQ:AMAT) stepped into and out of the earnings confessional after last night's close, where the semiconductor giant reported better-than-expected fiscal fourth-quarter results and a sunny outlook for adjusted earnings per share. The chip stock was last seen 7.9% lower at $171.29, however, after the firm forecasted disappointing fiscal first-quarter revenue guidance, now expecting $7.15 billion -- down from the $7.224 billion that analysts anticipated. The upbeat results were driv ...

Applied Materials, Inc. AMAT reported better-than-expected fourth-quarter results after Thursday's closing bell. Applied Materials reported quarterly earnings of $2.32 per share, which beat the analyst consensus estimate of $2.19. Quarterly revenue clocked in at $7.05 billion, which beat the analyst consensus estimate of $6.95 billion and is an increase over sales of $6.72 billion from the same period last year. "Applied Materials' technology leadership and strong execution drove record Q4 and fiscal 2024 p ...

Financial Data and Key Metrics Changes - For fiscal year 2024, net sales were $27.2 billion, up 2.5% year-over-year, with non-GAAP gross margin at 47.6%, the highest since fiscal 2000, and non-GAAP earnings per share grew 7.5% to $8.65 [24][20][23] - In Q4, net sales were $7.05 billion, up nearly 5% year-over-year, with non-GAAP gross margin at 47.5% and non-GAAP earnings per share at a record $2.32, up 9% year-over-year [25][24] Business Segment Data and Key Metrics Changes - Semiconductor Systems sales for Q4 were $5.18 billion, up 6% year-over-year, driven by leading-edge foundry-logic demand [26] - Applied Global Services (AGS) delivered record revenue of $1.64 billion in Q4, up 11% year-over-year, with a non-GAAP operating margin of 30% [27] - Display business generated revenue of $211 million, in line with expectations, amid lower investment levels in the industry [28] Market Data and Key Metrics Changes - China revenue declined to 30% of total revenue, consistent with historical averages, with expectations to maintain this level in the near term [25][36] - DRAM revenues grew over 60% year-over-year, with high-bandwidth memory (HBM) packaging revenues exceeding $700 million [16][24] Company Strategy and Development Direction - The company is focused on energy-efficient computing and major device architecture inflections, which are expected to drive growth and innovation in semiconductors [10][20] - Key strategic initiatives include the build-out of the EPIC collaborative R&D platform and the deployment of the Net Zero Playbook [8][20] - The company aims to strengthen R&D collaboration with customers to drive innovation and optimize mutual success rates [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the semiconductor industry's growth, driven by AI and energy-efficient computing, with expectations for continued demand in leading-edge logic and memory [20][31] - The company anticipates strong demand in leading-edge logic and ICAPS nodes, with a revenue outlook for Q1 of approximately $7.15 billion [31][20] Other Important Information - The company distributed over $5 billion to shareholders in fiscal 2024, including $3.8 billion through share repurchases, reflecting strong cash generation [30][29] - The company ended the quarter with cash and cash equivalents of $8 billion and debt of $6.3 billion, indicating a strong balance sheet [29] Q&A Session Summary Question: What is the expectation for China mix going into next year? - Management indicated that the China mix is expected to remain around 30%, with healthy demand in the ICAPS market globally [36][37] Question: What are the drivers of the gross margin increase? - The increase in gross margin is attributed to operational improvements, logistics, inventory management, and value-based pricing strategies [38][39] Question: How does the company view WFE spending for 2024 and 2025? - Management expects growth in WFE spending, with a long-term view of a $1 trillion semiconductor industry by 2030 [42][41] Question: How is the company addressing value-based pricing? - The company is enhancing its value pricing strategy by evaluating the value provided for each application and strengthening customer communications [57][58] Question: What is the outlook for DRAM and NAND markets? - Management sees strong demand in DRAM, particularly for HBM, while NAND growth is expected to be more modest due to high bit rate density [80][86] Question: What is the company's position on advanced packaging and technology transitions? - The company has established strong leadership in advanced packaging and expects significant growth in this area as heterogeneous integration becomes more widely adopted [18][19]

Applied Materials (AMAT) reported $7.05 billion in revenue for the quarter ended October 2024, representing a year-over-year increase of 4.8%. EPS of $2.32 for the same period compares to $2.12 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $6.94 billion, representing a surprise of +1.52%. The company delivered an EPS surprise of +6.42%, with the consensus EPS estimate being $2.18. While investors scrutinize revenue and earnings changes year-over-year and how they compare with ...

Applied Materials (AMAT) came out with quarterly earnings of $2.32 per share, beating the Zacks Consensus Estimate of $2.18 per share. This compares to earnings of $2.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 6.42%. A quarter ago, it was expected that this maker of chipmaking equipment would post earnings of $2.01 per share when it actually produced earnings of $2.12, delivering a surprise of 5.47%. Over the last fou ...

Fourth Quarter Fiscal 2024 Earnings Presentation November 14, 2024 Applied Materials External make possible Forward-Looking Statements 2 This presentation contains forward-looking statements, including those regarding anticipated growth and trends in our businesses and markets, industry outlooks and demand drivers, technology transitions, our business and financial performance and market share positions, our capital allocation and cash deployment strategies, our investment and growth strategies, our develop ...

Applied Materials (AMAT) reported fiscal fourth-quarter earnings that missed analysts’ expectations, sending shares lower after the bell Thursday despite a revenue beat. The semiconductor equipment maker saw revenue grow 5% year-over-year to $7.05 billion, above the analyst consensus from Visible Alpha. However, net income at $1.73 billion or $2.09 per share was down from $2 billion or $2.38 per share a year earlier and fell short of expectations.  Looking ahead, Applied Materials said it anticipates first ...

Financial Performance - Quarterly revenue reached $7.05 billion, representing a 5% increase year over year[1] - Quarterly GAAP EPS was $2.09, down 12% year over year, while non-GAAP EPS was $2.32, up 9% year over year[2] - Annual revenue for fiscal 2024 was $27.18 billion, a 2% increase year over year[1] - Annual GAAP EPS was $8.61, up 6% year over year, and non-GAAP EPS was $8.65, up 7% year over year[4] - Net income for Q4 FY2024 was $1,731 million, a decrease from $2,004 million in Q4 FY2023, while total net income for FY2024 reached $7,177 million compared to $6,856 million in FY2023[22] - The company reported diluted earnings per share of $2.09 for the three months ended October 27, 2024, down from $2.38 in the same period last year, a decrease of 12.2%[20] - Non-GAAP net income for Q4 FY2024 was $1,917 million, compared to $1,786 million in Q4 FY2023, with total non-GAAP net income for FY2024 reaching $7,210 million[24] Cash Flow and Operations - The company generated $2.58 billion in cash from operations in Q4 and $8.68 billion for the full year[3][5] - Total cash provided by operating activities for Q4 FY2024 was $2,575 million, significantly higher than $1,555 million in Q4 FY2023, contributing to a total of $8,677 million for FY2024[22] - Non-GAAP free cash flow for the three months ended October 27, 2024, was $2,168 million, up from $1,246 million in the same period last year[28] - Cash provided by operating activities for the three months ended October 27, 2024, was $2,575 million, compared to $1,555 million in the prior year[28] Shareholder Returns - Shareholder distributions totaled $1.77 billion in Q4, including $1.44 billion in share repurchases and $329 million in dividends[3] Segment Performance - In Q4, the Semiconductor Systems segment generated $5.18 billion in revenue, accounting for 73% of total revenue[12] - Non-GAAP operating income for Semiconductor Systems was $1,834 million for the three months ended October 27, 2024, compared to $1,751 million for the same period last year[26] - Non-GAAP operating margin for Semiconductor Systems was 35.4% for the three months ended October 27, 2024, slightly down from 35.9% year-over-year[26] Market Outlook - For Q1 FY2025, the company expects net revenue to be approximately $7.15 billion, plus or minus $400 million[9] - Non-GAAP diluted EPS for Q1 FY2025 is expected to be approximately $2.29, plus or minus $0.18[9] - The company is focused on expanding its market share and developing new markets, with ongoing investments in new products and technologies[19] Assets and Liabilities - Total assets increased to $34,409 million as of October 27, 2024, compared to $30,729 million a year earlier, representing a growth of 12.0%[21] - Cash and cash equivalents rose to $8,022 million, up from $6,132 million, marking a significant increase of 30.8%[21] - Total liabilities increased to $15,408 million from $14,380 million, reflecting a rise of 7.1%[21] - The company’s total stockholders' equity increased to $19,001 million, up from $16,349 million, indicating a growth of 10.1%[21] Expenses - Research, development, and engineering expenses increased to $3,233 million for the twelve months ended October 27, 2024, up from $3,102 million, indicating a growth of 4.2%[20] - Capital expenditures for the three months ended October 27, 2024, were $407 million, up from $309 million year-over-year[28] - The company reported capital expenditures of $407 million in Q4 FY2024, an increase from $309 million in Q4 FY2023, with total capital expenditures for FY2024 amounting to $1,190 million[22] Taxation - GAAP effective income tax rate for the three months ended October 27, 2024, was 8.7%[27] - Non-GAAP effective income tax rate for the same period was 11.0%[27]

Quarterly revenue $7.05 billion, up 5 percent year over yearQuarterly GAAP EPS $2.09 and non-GAAP EPS $2.32, down 12 percent and up 9 percent year over year, respectivelyAnnual revenue $27.18 billion, up 2 percent year over yearAnnual GAAP EPS $8.61 and non-GAAP EPS $8.65, up 6 percent and 7 percent year over year, respectively SANTA CLARA, Calif., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ: AMAT) today reported results for its fourth quarter and fiscal year ended Oct. 27, 2024. Fourt ...

Wall Street expects Applied Materials Inc AMAT to report $2.19 in earnings per share and $6.95 billion in revenues when the company posts fourth-quarter earnings after market hours.The stock is up 20.48% over the past year and 20.25% year-to-date.Let’s look at what the charts indicate for Applied Materials stock and how the stock currently maps against Wall Street estimates.Read Also: Applied Materials Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings CallApplied Materia ...