Earnings Highlights and Review: Another Record-Breaking Quarter for Applied Materials with the Highest Revenue and Earnings in its History

Research Desk Line-up: Nova Measuring Instruments Post Earnings Coverage

LONDON, UK / ACCESSWIRE / June 7, 2017 / Pro-Trader Daily publishes post-earnings coverage on Applied Materials, Inc. (NASDAQ: AMAT) following the Company’s release of its second quarter fiscal 2017 financial results on May 18, 2017. The maker of chipmaking equipment surpassed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Semiconductor Equipment & Materials industry. Pro-TD has currently selected Nova Measuring Instruments Ltd (NASDAQ: NVMI) for due-diligence and potential coverage as the Company reported on May 09, 2017, record financial results for Q1 2017, which ended on March 31, 2017. Register for a free membership today, and be among the early birds that get access to our report on Nova Measuring Instruments when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AMAT; also brushing on NVMI. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For its second quarter ended April 30, 2017, Applied Materials’ net sales surged 45% to $3.55 billion versus net sales of $2.45 billion in Q2 FY16. The Company’s revenue numbers surpassed analysts’ consensus estimates of $3.53 billion.

During Q2 FY17, Applied Materials’ gross margin grew 4.1 points to 45.1%, while operating margin increased by 9.2 points to 26.5%. On a non-GAAP adjusted basis, the Company’s gross margin grew 3.6 points to 46.3%, while operating margin advanced 8.6 points to 27.8%.

On a GAAP basis, Applied Materials recorded net income of $824 million, or $0.76 per share, for Q2 FY17 compared with net income of $320 million, or $0.29 per share, for Q2 FY16. The Company’s earnings, adjusted for one-time gains and costs, were $0.79 per share up 132% on a y-o-y basis. The Company’s results surpassed Wall Street’s estimates of $0.76 per share.

Segment Results

During Q2 FY17, Applied Materials’ semiconductor systems revenue soared 51% to $2.4 billion compared to revenue of $1.59 billion in Q2 FY16. The segment’s non-GAAP operating margin grew by 9.7 points to 35.5%. The Company’s services segment revenue surged 14% to a record $724 million in the reported quarter compared to revenue of $633 million in the year earlier quarter, while the segment’s non-GAAP operating margin grew by 80 basis points to 26.9%. For Q2 FY17, Applied Materials’ revenue from its display segment more than doubled to $391 million compared to revenue of $187 million in Q2 FY16, while the segment’s non-GAAP operating margin grew 4.9% to 21.5%.

Cash Matters

During Q2 FY17, Applied Materials generated $898 million in cash from operations and returned $390 million to shareholders, paying $108 million in dividend and using $282 million to repurchase 7 million shares of stock at an average price of $38.15. The Company ended the quarter with $7.7 billion of cash and investments, and nearly half was onshore. This increase included proceeds from $2.2 billion in debt raised in March to increase onshore liquidity

Outlook

For Q3 FY17, Applied Materials expects net sales to be in the range of $3.6 billion to $3.75 billion, the midpoint of the range would be an increase of approximately 30% on a y-o-y basis. The Company expects semiconductor systems revenue to grow by approximately 41%, while it expects Services’ revenue to increase by about 13% and display revenue is expected to increase by around 27%. Applied Materials is expecting non-GAAP gross margin to be approximately 46.5%. For the upcoming quarter, non-GAAP adjusted diluted EPS is expected to be in the range of $0.79 to $0.87, where the midpoint of the range would be an increase of approximately 66% on a y-o-y basis.

Stock Performance

On Tuesday, June 06, 2017, the stock closed the trading session at $46.57, slightly down 0.32% from its previous closing price of $46.72. A total volume of 7.81 million shares have exchanged hands. Applied Materials’ stock price skyrocketed 25.97% in the last three months, 48.12% in the past six months, and 92.68% in the previous twelve months. Moreover, the stock soared 44.31% since the start of the year. The stock is trading at a PE ratio of 19.20 and has a dividend yield of 0.86%. At Tuesday’s closing price, the stock’s net capitalization stands at $50.20 billion.

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