Applied Materials Beats Q2 Estimates

Shares of

gained around 3 percent in after-hours trading after the company reported better-than-expected results for the fiscal second quarter. The Santa Clara, California-based company reported quarterly net income of $364 million, or $0.29 per share, versus a year-ago profit of $262 million, or $0.21 per share. On a non-GAAP adjusted basis, the company posted net income of $362 million or $0.29 per share. Its revenue rose 4 percent year-over-year to $2.44 billion from $2.35 billion. However, analysts were expecting a profit of $0.28 per share on revenue of $2.40 billion. The average estimate among 16 Estimize users was for earnings of $0.30 per share and revenue of $2.42 billion. Its orders slipped 4 percent year-over-year to $2.52 billion in the latest quarter. On a non-GAAP adjusted basis, Applied Materials posted gross margin of 43.2 percent and operating income of $476 million in the second quarter. "Applied posted our highest quarterly revenue in the past three years and earnings near the top of our guidance range," said Gary Dickerson, president and CEO. "These results demonstrate that Applied is delivering the enabling products and services our customers need as they transition complex new devices into volume production." For the current quarter, Applied Materials expects adjusted earnings of $0.31 to $0.35 per share, versus analysts' estimates of $0.33 per share. Applied Materials shares rose 2.97 percent to $20.45 in the after-hours trading session.