Applied Materials : Free Research Report as Applied Materials’ Revenues Grew 28.8%; Adjusted EPS Surged 54.4%
Stock Monitor: Synopsys Post Earnings Reporting
LONDON, UK / ACCESSWIRE / June 14, 2018 / If you want access to our free earnings report on Applied Materials, Inc. (NASDAQ: AMAT), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AMAT. The Company reported its financial results on May 17, 2018, for the second quarter of the fiscal year 2018 (Q2 FY18). The Santa Clara, California-based Company surpassed market estimates for revenues and earnings for Q2 FY18 and also provided its guidance for Q3 FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
For the quarter ended April 29, 2018, Applied Materials' sales advanced 28.8% to $4.57 billion compared to $3.55 billion in the second quarter of 2017. The record quarterly sales were driven by increased customer investments in all segments, especially in the semiconductor equipment segment. The Company's revenue numbers exceeded market expectations of $4.45 billion.
During Q2 FY18, Applied Materials incurred cost of products sold of $2.48 billion versus $1.95 billion in Q2 FY17. The Company posted a gross profit of $2.09 billion in the reported quarter compared to $1.60 billion in the year ago same period, increasing 30.6% on a y-o-y basis.
For the reported quarter, Applied Materials' total operating expenses rose 15.6% to $763.0 million compared to $660.0 million in the year ago corresponding period. The Company reported an operating income of $1.33 billion in Q2 FY18 compared to $940.0 million in Q2 FY17. The Company's operating margin improved to 29.1% in Q2 FY18 compared to 26.5% in Q2 FY17.
Applied Materials' net income surged 37% to $1.13 billion in the reported quarter versus $824.0 million in the year ago comparable period. The Company posted a non-GAAP adjusted net income of $1.27 billion in Q2 FY18 versus $861.0 million in Q2 FY17, increasing 48% on a y-o-y basis.
For Q2 FY18, Applied Materials reported record diluted earnings per share (EPS) of $1.09 compared to $0.76 in Q2 FY17, reflecting an increase of 43.4% on a y-o-y basis. The Company's non-GAAP adjusted diluted EPS grew 54.4% to $1.22 in Q2 FY18 compared to $0.79 in Q2 FY17, beating market projections of $1.13.
Applied Materials operates through three segments, namely: (i) Semiconductor Systems; (ii) Applied Global Services; and (iii) Display and Adjacent Markets.
Applied Materials' Semiconductor Systems segment's net sales increased 25% to $3.00 billion in Q2 FY18 compared to $2.40 billion in Q2 FY17, primarily due to higher spending from memory and logic customers. The segment's operating income grew 33% to $1.07 billion in the reported quarter compared to $808.0 million in the prior year's same period. The segment's operating margin advanced to 35.7% in Q2 FY18 from 33.6% in Q2 FY17.
For the reported quarter, Applied Materials' Applied Global Services segment aggregated sales of $943.0 million compared to $724.0 million in the corresponding quarter of last year. The growth was due to higher customer spending for spares and services. The segment's operating income soared 43% to $278.0 million in Q2 FY18 compared to $194.0 million in Q2 FY17. The segment's operating margin increased to 29.5% in Q2 FY18 in compared to 26.8% in Q2 FY17.
During Q2 FY18, Applied Materials' Display and Adjacent Markets segment's net sales rose 53% to $600.0 million compared to $391.0 million in Q2 FY17, primarily due to higher customer investments in TV display and mobile device manufacturing equipment. During Q2 FY18, the segment's operating income was $162.0, up 93% from $84.0 million in Q2 FY17. The segment's operating margin was 27.0% in Q2 FY18 compared to 21.5% in Q2 FY17.
As of April 29, 2018, Applied Materials' cash and cash equivalents stood at $4.87 billion compared to $4.94 billion as of April 30, 2017. The Company had a long-term debt of $5.31 billion as of April 29, 2018, compared to $5.30 billion as of October 29, 2017. For the reported quarter, the Company generated cash from operating activities of $2.08 billion versus $1.70 billion in the prior year's comparable period.
During Q2 FY18, Applied Materials repurchased its common stock worth $2.5 billion.
For Q3 FY18, Applied Materials' expects revenues to be in the range of $4.33 billion to $4.53 billion, and non-GAAP adjusted diluted EPS to be in the band of $1.13 to $1.21.
Stock Performance Snapshot
June 13, 2018 - At Wednesday's closing bell, Applied Materials' stock marginally rose 0.24%, ending the trading session at $50.98.
Volume traded for the day: 16.81 million shares, which was above the 3-month average volume of 14.03 million shares.
Stock performance in the past twelve-month period ? up 13.67%
After yesterday's close, Applied Materials' market cap was at $55.01 billion.
Price to Earnings (P/E) ratio was at 12.79.
The stock has a dividend yield of 0.98%.
The stock is part of the Technology sector, categorized under the Semiconductor Equipment & Materials industry.
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