Applied Materials (NASDAQ: AMAT) topped revenue and earnings expectations for the first quarter of 2020, allowing shares to gain 1% in aftermarket hours on Wednesday.
Total revenues increased 11% year-over-year to $4.16 billion, surpassing forecasts of $4.11 billion.
GAAP net income rose 16% to $892 million and EPS grew 20% to $0.96. Adjusted EPS increased 21% year-over-year to $0.98, beating estimates of $0.92.
For the second quarter of 2020, the company expects net sales to be approx. $4.34 billion, plus or minus $200 million. Adjusted EPS is expected to be $0.98 to $1.10.
The demand for advanced electronic products continues to dominate the semiconductor industry. The industry has created new opportunities backed by the growth of data and emerging end-market drivers that include artificial intelligence, augmented and virtual reality, the Internet of Things (IoT), and smart or autonomous vehicles.
Market experts believe that the implementation of artificial intelligence, IoT, and big data could be beneficial for the company at least for the next couple of years. Also, the company could experience strong semiconductors demand for memory, storage, and networking with increased demand for equipment and services.
Shares of Applied Materials have gained 60% over the past one year and 14% over the past three months.
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