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Applied Materials Posts Stronger-Than-Expected Quarterly Results

Revenue soared 41% to $6.2 billion from $4.4 billion a year earlier. The analyst consensus called for $5.94 billion in the latest quarter.
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Applied Materials  (AMAT) - Get Applied Materials, Inc. Report shares were steady Thursday, after the semiconductor equipment maker reported stronger-than-expected results for the fiscal 2021 third quarter, ended Aug. 1.

It registered net income of $1.716 billion, or $1.87 per share, up from $841 million, or 91 cents a share last year. The FactSet analyst consensus called for $1.74 per share in the latest quarter.

Adjusted profit totaled $1.90, up from $1.06 per share a year ago and well above the analyst consensus of $1.77.

Revenue soared 41% to $6.196 billion from $4.395 billion a year earlier. The analyst consensus called for $5.94 billion in the latest quarter.

The stock recently traded at $129.18, barely changed, and has gained 14% in the last six months..

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“Applied Materials delivered record performance as long-term trends fueled by the digital transformation of the economy drive strong, secular demand for semiconductors,” said Gary Dickerson, the company’s chief executive.

“Applied has the broadest and most enabling portfolio of technologies to accelerate our customers’ roadmaps, putting us in a great position to outperform our markets again in 2021 and the years ahead.”

As for guidance, Applied expects revenue of about $6.33 billion in the current quarter, plus or minus $250 million. Non-GAAP adjusted diluted EPS is expected to reside between $1.87 and $2.01.

Prior to the report, Morningstar analyst Abhinav Davuluri put fair value at $125 for Applied Materials, which he says is well ahead of any competition. 

“The firm is the dominant player in the material deposition and removal areas, among others,” Davuluri wrote in May. “Applied boasts an impressive global presence.”