NASDAQ$AMAT

Applied Materials Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Applied Materials reported strong Q2 2023 results with revenues and earnings at the high end of guidance and expects to outperform markets in 2023.

Applied Materials announced its Q2 2023 results, reporting revenue of $6.63 billion, up 6% year-over-year. GAAP EPS was $1.86, and non-GAAP EPS was $2.00, representing increases of 7% and 8% year-over-year, respectively. The company generated $2.29 billion in cash from operations and returned $1.02 billion to shareholders through share repurchases and dividends.

  • Revenue reached $6.63 billion, a 6% increase year-over-year.
  • GAAP operating margin was 28.8%, while non-GAAP operating margin was 29.1%, both down 1.5 points year-over-year.
  • GAAP EPS was $1.86, and non-GAAP EPS was $2.00, up 7% and 8% year-over-year, respectively.
  • Cash from operations totaled $2.29 billion.

Headline financials

Total Revenue

$6.63B

Previous: $6.25B+6.2%
EPS (adj)

$2.00

Previous: $1.85+8.1%
Non-GAAP Gross Margin

46.8%

Previous: 47.0%-0.4%
Non-GAAP Operating Margin

29.1%

Previous: 30.6%-4.9%
Gross Margin

46.7%

Previous: 46.9%-0.4%
Operating Margin

28.8%

Previous: 30.3%-5.0%
Share Repurchases

$800M

Previous: $1.8B-55.6%
Dividends Paid

$219M

Previous: $211M+3.8%
Capital Expenditures

-$542M

Previous: -$354M-53.1%
Free Cash Flow

$1.03B

Previous: $1.18B-12.6%
Net Income

$1.58B

Previous: $1.54B+2.5%
Operating Income

$1.91B

Previous: $1.89B+0.9%
Gross Profit

$3.09B

Previous: $2.93B+5.7%
Cash & Equivalents

$4.59B

Previous: $3.33B+37.7%
Total Assets

$29.1B

Previous: $25.5B+14.3%
Stock-Based Comp

$113M

Previous: $101M+11.9%

Revenue & EPS history

Applied Materials · Revenue · Quarterly

$6.63B

Q2 2023+6.2%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Applied Materials · $6.46B total across 3 segments · Q2 2023

  • Semiconductor Systems
    $4.98B+11.6%
  • Applied Global Services
    $1.43B+3.3%
  • Other
    $57M+147.8%

Forward guidance

For the third quarter of fiscal 2023, Applied expects net sales to be approximately $6.15 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.56 to $1.92.

Tailwinds

  • Net sales are expected to be approximately $6.15 billion, plus or minus $400 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.56 to $1.92.
  • The outlook includes the normalized tax benefit of share-based compensation of $0.01 per share.
  • The outlook includes a net income tax benefit related to intra-entity intangible asset transfers of $0.01 per share.

Headwinds

  • The outlook excludes known charges related to completed acquisitions of $0.01 per share.
  • The outlook does not reflect any items that are unknown at this time.
  • Additional charges related to acquisitions or other non-operational or unusual items are not reflected.
  • Other tax-related items are not able to be predicted 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 Q2 2023

Historical avgQ2 2023

+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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