Categories AlphaGraphs, Earnings, LATEST, Technology

Applied Materials sinks despite revenue and earnings beat

Applied Materials (AMAT), a supplier of semiconductor manufacturing equipment to chipmakers around the world, posted strong top and bottom line results, beating consensus estimates. The company reported record quarterly revenue for the quarter of $4.57 billion, a 29% increase year-over-year. The company has been investing in high growth markets with greater margins, in turn improving operational efficiency.

Profit for the quarter came in at $1.12 billion, increasing 37% from the year-earlier quarter, while reported EPS jumped 43% to $1.09. Meanwhile, earnings on an adjusted basis grew 54% to $1.22 per share. Rise in the bottom line results was driven by double-digit growth across the company’s segments and geographies, especially Japan, Korea and China.

Applied Materials earnings Q2 2018
Applied Materials Q2 2018 Earnings Infographic

“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.

Most Popular

Earnings Preview: What to look for when Broadcom (AVGO) reports Q1 results

Broadcom, Inc. (NASDAQ: AVGO) will be releasing its first-quarter results next week. Over the years, the company constantly broadened its portfolio beyond semiconductors to areas like enterprise software solutions, a

Here’s a look at Lowe’s (LOW) expectations for the near term and ahead

Shares of Lowe’s Companies, Inc. (NYSE: LOW) were up over 1% on Friday. The stock has gained 19% over the past three months. The home improvement retailer saw sales and

TJX Companies (TJX) Q4 2024 profit jumps on strong revenue growth

The TJX Companies, Inc. (NYSE: TJX) has reported a double-digit increase in net income for the fourth quarter of 2024 when the fashion retailer's net sales grew 13%. Fourth-quarter sales

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top