Applied Materials Tops Q2 Earnings Expectations, Shares Surge On Strong Outlook

Applied Materials Inc (NASDAQ:AMAT) reported financial results for the second quarter on Thursday after the market close. Here’s a rundown of the report.

• Applied Materials stock is building positive momentum. What’s pushing AMAT stock higher?

Applied Materials Q2 Highlights

Applied Materials reported second-quarter revenue of $7.91 billion, beating analyst estimates of $7.65 billion. The chip equipment manufacturer reported adjusted earnings of $2.86 per share for the quarter, beating analyst estimates of $2.66 per share, according to Benzinga Pro.

Total revenue was up 11% year-over-year. Gross margin was 49.9% in the second quarter, or 50% on an adjusted basis. The company generated $845 million in cash from operations and distributed $765 million to shareholders via share repurchases and dividends.

Applied Materials ended the quarter with approximately $6.3 billion in cash and cash equivalents.

“The rapid global build-out of AI computing infrastructure, combined with Applied’s strong leadership positions in leading-edge logic, DRAM and advanced packaging, provides an exceptionally strong foundation for sustained, multi-year revenue and profit growth,” said Gary Dickerson, president and CEO of Applied Materials.

What’s Next For Applied Materials?

Applied Materials expects third-quarter revenue of $8.95 billion, plus or minus $500 million, versus estimates of $8.09 billion. The company expects third-quarter adjusted earnings of $3.16 to $3.56 per share, versus estimates of $2.88 per share.

Applied Materials said it now expects to grow its semiconductor equipment business by more than 30% this calendar year, up from prior guidance of 20%.

Applied Materials executives will further discuss the quarter on an earnings call scheduled for 4:30 p.m. ET.

AMAT Stock Moves Higher After Hours

AMAT Price Action: Applied Materials shares were up 3.50% in after-hours on Thursday, trading at $455.99 at the time of publication, according to Benzinga Pro.

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