08.18.17
Applied Materials, Inc., which celebrates its 50th corporate anniversary on Nov. 10, reported record results in its third quarter ended July 30, 2017.
Compared to the same period last year, the company grew net sales by 33% to $3.74 billion; increased gross margin by 3.1 points to 45.4%; grew operating margin by 6.2 points to 27.3%; and increased earnings per share (EPS) by 85% to $0.85. On a non-GAAP adjusted basis, the company increased gross margin by 2.9 points to 46.6%, grew operating margin by 5.9 points to 28.7%, and increased EPS by 72% to $0.86.
The company generated a record $1.37 billion in cash from operations, which represented 36% of revenue, and returned $482 million to shareholders through stock repurchases and cash dividends.
“With revenue and profits at all-time highs, Applied has tremendous momentum and a very positive outlook for the future,” said Gary Dickerson, president and CEO. “Our markets are growing with a broader set of demand drivers, and the breadth of Applied’s technology enables us to play a larger and more valuable role advancing the innovation roadmap in semiconductor and display.”
In the fourth quarter of fiscal 2017, Applied expects net sales to be in the range of $3.85 billion to $4.0 billion; the midpoint of the range would be an increase of approximately 19%, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.86 to $0.94; the midpoint of the range would be an increase of approximately 36%, year over year.
Compared to the same period last year, the company grew net sales by 33% to $3.74 billion; increased gross margin by 3.1 points to 45.4%; grew operating margin by 6.2 points to 27.3%; and increased earnings per share (EPS) by 85% to $0.85. On a non-GAAP adjusted basis, the company increased gross margin by 2.9 points to 46.6%, grew operating margin by 5.9 points to 28.7%, and increased EPS by 72% to $0.86.
The company generated a record $1.37 billion in cash from operations, which represented 36% of revenue, and returned $482 million to shareholders through stock repurchases and cash dividends.
“With revenue and profits at all-time highs, Applied has tremendous momentum and a very positive outlook for the future,” said Gary Dickerson, president and CEO. “Our markets are growing with a broader set of demand drivers, and the breadth of Applied’s technology enables us to play a larger and more valuable role advancing the innovation roadmap in semiconductor and display.”
In the fourth quarter of fiscal 2017, Applied expects net sales to be in the range of $3.85 billion to $4.0 billion; the midpoint of the range would be an increase of approximately 19%, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.86 to $0.94; the midpoint of the range would be an increase of approximately 36%, year over year.