Applied Materials(US:AMAT)2024-08-15 20:04Financial Performance - Revenue for Q3 FY2024 was $6.78 billion, representing a 5% increase year over year[1] - GAAP operating margin was 28.7%, up 0.7 points from the previous year, while non-GAAP operating margin was 28.8%, up 0.5 points[2] - GAAP EPS was $2.05, an 11% increase year over year, and non-GAAP EPS was $2.12, a 12% increase[2] - Net revenue for the three months ended July 28, 2024, was $6,778 million, a 5.5% increase from $6,425 million for the same period last year[15] - Net income for the three months ended July 28, 2024, was $1,705 million, representing a 9.2% increase compared to $1,560 million for the same period last year[15] - Basic earnings per share for the three months ended July 28, 2024, was $2.06, up from $1.86 in the same period last year, reflecting a 10.8% increase[15] - Q3 FY 2024 net revenue reached $3,305 million, compared to $2,800 million in Q3 FY 2023, reflecting a growth of 18%[18] - GAAP reported net income for Q3 FY 2024 was $1,705 million, compared to $1,560 million in Q3 FY 2023, indicating a year-over-year increase of 9.2%[19] - Non-GAAP earnings per diluted share for Q3 FY 2024 was $2.12, compared to $1.90 in Q3 FY 2023, representing a growth of 11.6%[21] Cash Flow and Shareholder Returns - The company generated $2.39 billion in cash from operations and returned $1.19 billion to shareholders through share repurchases and dividends[2] - Cash provided by operating activities for the three months ended July 28, 2024, was $2,385 million, compared to $2,583 million for the same period last year[17] - Non-GAAP free cash flow for the three months ended July 28, 2024, was $2,088 million, down from $2,328 million year-over-year[26] - For the nine months ended July 28, 2024, non-GAAP free cash flow totaled $5,319 million, compared to $6,348 million for the same period last year[26] Revenue Segmentation - Semiconductor Systems segment revenue was $4.92 billion, with an operating margin of 34.8%[6] - Applied Global Services segment revenue was $1.58 billion, with an operating margin of 29.6%[6] - Display and Adjacent Markets segment revenue was $251 million, with an operating margin of 6.4%[6] - Revenue from China accounted for 32% of total revenue in Q3 FY 2024, up from 27% in Q3 FY 2023[18] - Revenue from Taiwan decreased to $1,148 million in Q3 FY 2024, down from $1,345 million in Q3 FY 2023, reflecting a decline in percentage of total revenue from 21% to 17%[18] Future Projections - For Q4 FY2024, Applied expects net revenue to be approximately $6.93 billion, plus or minus $400 million[4] - Non-GAAP diluted EPS for Q4 FY2024 is projected to be in the range of $2.00 to $2.36[4] Assets and Liabilities - Total current assets increased to $20,671 million as of July 28, 2024, from $19,147 million as of October 29, 2023[16] - Total liabilities rose to $14,807 million as of July 28, 2024, compared to $14,380 million as of October 29, 2023[16] - Cash and cash equivalents increased to $8,288 million as of July 28, 2024, from $6,132 million as of October 29, 2023[16] - The company reported a total of $3,100 million in property, plant, and equipment as of July 28, 2024, up from $2,723 million as of October 29, 2023[16] - Total stockholders' equity increased to $18,840 million as of July 28, 2024, from $16,349 million as of October 29, 2023[16] Employee Metrics - The company employed 35.2 thousand regular full-time employees in Q3 FY 2024, an increase from 34.5 thousand in Q3 FY 2023[18] Taxation - The effective income tax rate for GAAP was 13.0% in Q3 FY 2024, while the non-GAAP effective income tax rate was 12.2%[25] Capital Expenditures - Capital expenditures for the three months ended July 28, 2024, were $(297) million, slightly higher than $(255) million for the same period last year[26] - Capital expenditures for the nine months ended July 28, 2024, were $(783) million, compared to $(797) million for the same period last year[26] Strategic Focus - The company is focused on leveraging demand for AI technologies to drive future growth and market performance[2]