08.20.18
Applied Materials, Inc. reported strong revenue, operating income and earnings per share in its third quarter ended July 29, 2018.
Compared to the third quarter of fiscal 2017, Applied grew net sales by 19% to $4.47 billion. On a GAAP basis, the company recorded gross margin of 45.4%, and grew operating income by 23% to $1.26 billion or 28.1% of net sales. GAAP earnings per share (EPS) grew 38% to $1.17.
On a non-GAAP adjusted basis, over the same period, the company reported gross margin of 46.4%, grew operating income by 22% to $1.31 billion or 29.2% of net sales, and increased EPS by 40% to $1.20.
The company returned $1.45 billion to shareholders through $1.25 billion in share repurchases and dividends of $199 million.
“While we have seen some near-term adjustments in customer spending, fiscal 2018 is on track to be another record-setting year for Applied Materials and we expect each of our major businesses to deliver strong double-digit growth,” said Gary Dickerson, president and CEO. “Our future outlook remains positive as the A.I.-Big Data era requires new breakthroughs in technology, from materials to systems, providing Applied with a great opportunity to play a larger and more valuable role in the ecosystem.”
In the fourth quarter of fiscal 2018, Applied expects net sales for fiscal 2018 to be in the range of $3.85 billion to $4.15 billion; the midpoint of the range would be approximately flat, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.92 to $1.00; the midpoint of the range would be an increase of approximately 3%, year over year.
With this fourth-quarter outlook, Applied expects net sales for fiscal 2018 to be in the range of $17.1 billion to $17.4 billion; the midpoint of the range would be up approximately 19% year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $4.41 to $4.49; the midpoint of the range would be an increase of approximately 37%, year over year.
Compared to the third quarter of fiscal 2017, Applied grew net sales by 19% to $4.47 billion. On a GAAP basis, the company recorded gross margin of 45.4%, and grew operating income by 23% to $1.26 billion or 28.1% of net sales. GAAP earnings per share (EPS) grew 38% to $1.17.
On a non-GAAP adjusted basis, over the same period, the company reported gross margin of 46.4%, grew operating income by 22% to $1.31 billion or 29.2% of net sales, and increased EPS by 40% to $1.20.
The company returned $1.45 billion to shareholders through $1.25 billion in share repurchases and dividends of $199 million.
“While we have seen some near-term adjustments in customer spending, fiscal 2018 is on track to be another record-setting year for Applied Materials and we expect each of our major businesses to deliver strong double-digit growth,” said Gary Dickerson, president and CEO. “Our future outlook remains positive as the A.I.-Big Data era requires new breakthroughs in technology, from materials to systems, providing Applied with a great opportunity to play a larger and more valuable role in the ecosystem.”
In the fourth quarter of fiscal 2018, Applied expects net sales for fiscal 2018 to be in the range of $3.85 billion to $4.15 billion; the midpoint of the range would be approximately flat, year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.92 to $1.00; the midpoint of the range would be an increase of approximately 3%, year over year.
With this fourth-quarter outlook, Applied expects net sales for fiscal 2018 to be in the range of $17.1 billion to $17.4 billion; the midpoint of the range would be up approximately 19% year over year. Non-GAAP adjusted diluted EPS is expected to be in the range of $4.41 to $4.49; the midpoint of the range would be an increase of approximately 37%, year over year.