“Applied’s performance in the second fiscal quarter was another all-time record for the company, which demonstrates strong execution and customer pull for materials solutions that help accelerate roadmaps and bring new devices to market faster,” said Gary Dickerson, President and CEO.
Applied’s high growth market China and Korea continued its growth momentum in the second quarter, with revenue increasing 56% and 32% year-over-year. China and Korea regions were the highest revenue contributors, accounting for 27% and 25% of total sales respectively. Japan and Europe also posted double-digit increases in revenue, offset by dismal sales performance in Taiwan and United States.
While Applied Materials’ all three segments performed better than expected, Display and Adjacent Market segment posted standout performance increasing 53% year-over-year. Higher capital spending in this space helped the company gain greater sales, as more consumers transitioned to smartphones.
For 3Q18, Applied Materials expects sales in the range of $4.33 billion to $4.53 billion. Adjusted EPS is expected to be $1.13 to $1.21.
The company’s stock plunged over 5% post the earnings release. However, the stock has gained over 15% over the past one year.