11.18.16
Applied Materials, Inc. reported results for its fourth quarter and fiscal year ended Oct. 30, 2016.
Fourth quarter new orders were $3.03 billion, up 25% year over year. Backlog of $4.58 billion was up 46% year over year. Net sales of $3.30 billion were up 39% year over year.
The company recorded fourth quarter gross margin of 42.4%, operating margin of 23.6%, and diluted earnings per share (EPS) of $0.56. On a non-GAAP adjusted basis, fourth quarter gross margin increased 1.5 points year over year to 43.7%, operating margin grew 5.9 points year over year to 25.2%, and diluted EPS grew by 128% year over year to $0.66.
The company generated $797 million in cash from operations and returned $279 million to shareholders through stock repurchases and cash dividends.
In fiscal 2016, new orders grew 23% to $12.42 billion and net sales increased 12% to $10.83 billion. The company recorded gross margin of 41.7%, operating income of $2.15 billion or 19.9% of net sales, and diluted EPS of $1.54. On a non-GAAP adjusted basis, gross margin increased 300 basis points to 43.2%, operating income increased 24% to $2.35 billion or 21.7% of net sales, and diluted EPS increased 47% to $1.75.
The company generated $2.47 billion in cash from operations, paid dividends of $444 million and used $1.89 billion to repurchase 96 million shares of common stock at an average price of $19.82.
“In fiscal 2016, we grew orders, revenue, and earnings to the highest levels in the company’s history, and made significant progress towards our longer-term strategic and financial goals,” said Gary Dickerson, president and CEO. “We’ve focused our organization and investments to deliver highly differentiated solutions that enable customers to build new devices and structures that were never possible before.”
“As we look to 2017 and beyond, we see sustainable growth as new demand drivers layer on top of our traditional end markets in computing, mobility and consumer electronics,” said Bob Halliday, SVP and CFO. “The industries we serve are bigger and more attractive, our opportunity set is larger, our customer relationships are stronger, and we’re excited about our new product pipeline.”
In the first quarter of fiscal 2017, Applied expects net sales to be in the range of $3.20 billion to $3.34 billion; the midpoint of the range would be an increase of approximately 45%, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.62 to $0.70; the midpoint of the range would be an increase of approximately 154%, year over year.
Fourth quarter new orders were $3.03 billion, up 25% year over year. Backlog of $4.58 billion was up 46% year over year. Net sales of $3.30 billion were up 39% year over year.
The company recorded fourth quarter gross margin of 42.4%, operating margin of 23.6%, and diluted earnings per share (EPS) of $0.56. On a non-GAAP adjusted basis, fourth quarter gross margin increased 1.5 points year over year to 43.7%, operating margin grew 5.9 points year over year to 25.2%, and diluted EPS grew by 128% year over year to $0.66.
The company generated $797 million in cash from operations and returned $279 million to shareholders through stock repurchases and cash dividends.
In fiscal 2016, new orders grew 23% to $12.42 billion and net sales increased 12% to $10.83 billion. The company recorded gross margin of 41.7%, operating income of $2.15 billion or 19.9% of net sales, and diluted EPS of $1.54. On a non-GAAP adjusted basis, gross margin increased 300 basis points to 43.2%, operating income increased 24% to $2.35 billion or 21.7% of net sales, and diluted EPS increased 47% to $1.75.
The company generated $2.47 billion in cash from operations, paid dividends of $444 million and used $1.89 billion to repurchase 96 million shares of common stock at an average price of $19.82.
“In fiscal 2016, we grew orders, revenue, and earnings to the highest levels in the company’s history, and made significant progress towards our longer-term strategic and financial goals,” said Gary Dickerson, president and CEO. “We’ve focused our organization and investments to deliver highly differentiated solutions that enable customers to build new devices and structures that were never possible before.”
“As we look to 2017 and beyond, we see sustainable growth as new demand drivers layer on top of our traditional end markets in computing, mobility and consumer electronics,” said Bob Halliday, SVP and CFO. “The industries we serve are bigger and more attractive, our opportunity set is larger, our customer relationships are stronger, and we’re excited about our new product pipeline.”
In the first quarter of fiscal 2017, Applied expects net sales to be in the range of $3.20 billion to $3.34 billion; the midpoint of the range would be an increase of approximately 45%, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.62 to $0.70; the midpoint of the range would be an increase of approximately 154%, year over year.