NASDAQ$AMAT

Applied Materials Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Applied Materials reported first quarter results with revenue up 11 percent year over year and returned $392 million to shareholders.

Applied Materials' first quarter earnings exceeded the top-end of their guidance, giving them great momentum entering 2020. The company generated revenue of $4.16 billion, with a GAAP EPS of $0.96 and a non-GAAP EPS of $0.98. They returned $392 million to shareholders through share repurchases and dividends.

  • Quarterly revenue of $4.16 billion, up 11 percent year over year
  • GAAP EPS of $0.96 and non-GAAP EPS of $0.98, up 20 percent and 21 percent year over year, respectively
  • Returned $392 million to shareholders
  • First quarter earnings exceeded the top-end of guidance

Headline financials

Total Revenue

$4.16B

Previous: $3.75B+10.9%
EPS (adj)

$0.98

Previous: $0.81+21.0%
Non-GAAP Gross Margin

44.9%

Previous: 44.6%+0.7%
Non-GAAP Operating Margin

25.7%

Previous: 24.6%+4.5%
Gross Margin

44.6%

Previous: 44.4%+0.5%
Operating Margin

25.0%

Previous: 24.2%+3.3%
Share Repurchases

$200M

No prior period
Dividends Paid

$192M

No prior period
Capital Expenditures

-$102M

Previous: -$133M+23.3%
Free Cash Flow

$790M

Previous: $638M+23.8%
Net Income

$892M

Previous: $771M+15.7%
Operating Income

$1.04B

Previous: $908M+14.8%
Gross Profit

$1.86B

Previous: $1.67B+11.6%
Cash & Equivalents

$3.42B

Previous: $3.19B+7.3%
Total Assets

$19.8B

Previous: $18.9B+4.5%
Stock-Based Comp

$93M

Previous: $65M+43.1%

Revenue & EPS history

Applied Materials · Revenue · Quarterly

$4.16B

Q1 2020+10.9%vs Q1 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Applied Materials · $3.83B total across 3 segments · Q1 2020

  • Semiconductor Systems
    $2.81B+24.1%
  • Applied Global Services
    $997M+3.6%
  • Other
    $19M

Forward guidance

For the second quarter of fiscal 2020, Applied expects net sales to be approximately $4.34 billion, plus or minus $200 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.98 to $1.10.

Tailwinds

  • Net sales expected to be approximately $4.34 billion, plus or minus $200 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $0.98 to $1.10.
  • Includes the normalized tax benefit of share-based compensation of $0.01 per share
  • Includes net income tax benefit related to intra-entity intangible asset transfers of $0.03 per share

Headwinds

  • Excludes known charges related to completed acquisitions of $0.01 per share
  • Does not reflect any items that are unknown at this time
  • Excludes any additional charges related to acquisitions or other non-operational or unusual items
  • Does not include other tax related items
  • The company is not able to predict these items without unreasonable efforts due to their inherent uncertainty.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.7%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.9%

Avg return

30 days after

56%

41 / 73 earnings

Positive

+13.8%

Q2 2016

Best reaction

-14.1%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-4.2%-6.4%+25.5%
Q1 2026+8.1%+12.5%+4.0%
Q4 2025+4.4%+5.3%+16.1%
Q3 2025-14.1%-14.5%-10.9%
Q2 2025-5.1%-7.2%-2.4%
Q1 2025-8.2%-5.5%-15.5%
Q4 2024-7.6%-7.4%-7.4%
Q3 2024+3.1%+2.2%-6.5%
Q2 2024-2.5%+1.1%+9.0%
Q1 2024+7.2%+1.6%+6.7%
Q4 2023-4.4%-3.9%+4.2%
Q3 2023+3.2%+6.9%+0.0%
Q2 2023+1.0%-1.0%+10.5%
Q1 2023-3.4%-6.8%+2.6%
Q4 2022+0.5%+2.7%+0.5%
Q3 2022-1.3%-3.8%-16.2%
Q2 2022-4.4%-4.3%-19.3%
Q1 2022-2.4%-4.6%-3.4%
Q4 2021-3.8%-4.5%-6.3%
Q3 2021-0.1%+3.2%+10.5%
Q2 2021+3.1%+10.2%+5.2%
Q1 2021+3.2%+0.4%-0.7%
Q4 2020+2.3%+4.5%+24.1%
Q3 2020+1.7%-0.1%-17.3%
Q2 2020+1.1%+7.7%+9.8%
Q1 2020+4.5%+3.7%-21.0%
Q4 2019+8.6%+6.7%+4.8%
Q3 2019-0.2%+0.0%+9.9%
Q2 2019+2.9%-0.6%-0.7%
Q1 2019-4.3%-3.8%-1.1%
Q4 2018+5.4%+6.5%-2.8%
Q3 2018-7.9%-7.9%-17.7%
Q2 2018-10.3%-8.9%-10.6%
Q1 2018+9.0%+11.1%+20.0%
Q4 2017+1.3%+5.4%-5.8%
Q3 2017-0.4%-0.0%+6.0%
Q2 2017+3.1%+5.0%+0.8%
Q1 2017-0.1%+1.2%+11.5%
Q4 2016+2.4%+5.5%+8.3%
Q3 2016+8.6%+9.7%+10.1%
Q2 2016+13.8%
Q1 2016+7.2%
Q4 2015+2.7%
Q3 2015-3.8%
Q2 2015+1.4%
Q1 2015-0.6%
Q4 2014+1.5%
Q3 2014+7.2%
Q2 2014+6.6%
Q1 2014+6.1%
Q4 2013-0.8%
Q3 2013-0.7%
Q2 2013+1.1%
Q1 2013+1.7%
Q4 2012-2.0%
Q3 2012+2.3%
Q2 2012-1.2%
Q1 2012-0.6%
Q4 2011+2.4%
Q3 2011+5.4%
Q2 2011-2.6%
Q1 2011+0.5%
Q4 2010-0.5%
Q3 2010+0.3%
Q2 2010+1.5%
Q1 2009+1.4%
Q1 2010+1.4%
Q4 2007+1.9%
Q4 2009+1.9%
Q3 2009-1.6%
Q2 2009-1.6%
Q4 2008-1.6%
Q3 2008-1.6%

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