NASDAQ$AMAT

Applied Materials Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Applied Materials reported strong Q3 2020 results with revenue up 23% year over year and EPS exceeding expectations.

Applied Materials announced outstanding financial results for Q3 2020, with revenue reaching $4.40 billion, a 23% increase year-over-year. GAAP EPS was $0.91, and non-GAAP EPS was $1.06, representing increases of 49% and 43% year-over-year, respectively. The company returned $402 million to shareholders through share repurchases and dividends.

  • Quarterly revenue reached $4.40 billion, a 23% increase year-over-year.
  • GAAP EPS was $0.91, up 49% year-over-year.
  • Non-GAAP EPS was $1.06, up 43% year-over-year.
  • Returned $402 million to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$4.4B

Previous: $3.56B+23.4%
EPS (adj)

$1.06

Previous: $0.74+43.2%
Non-GAAP Gross Margin

45.0%

Previous: 44.0%+2.3%
Non-GAAP Operating Margin

26.4%

Previous: 23.0%+14.8%
Gross Margin

44.5%

Previous: 43.7%+1.8%
Operating Margin

25.2%

Previous: 22.5%+12.0%
Capital Expenditures

-$260M

Previous: -$344M+24.4%
Free Cash Flow

$581M

Previous: $227M+155.9%
Net Income

$841M

Previous: $571M+47.3%
Operating Income

$1.11B

Previous: $802M+38.2%
Gross Profit

$1.96B

Previous: $1.56B+25.6%
Cash & Equivalents

$4.35B

Previous: $3.01B+44.3%
Total Assets

$21.2B

Previous: $18.8B+12.6%
Stock-Based Comp

$70M

Previous: $67M+4.5%

Revenue & EPS history

Applied Materials · Revenue · Quarterly

$4.4B

Q3 2020+23.4%vs Q3 2019
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Applied Materials · $3.97B total across 3 segments · Q3 2020

  • Semiconductor Systems
    $2.92B
  • Applied Global Services
    $1.03B
  • Other
    $20M

Forward guidance

For the fourth quarter of fiscal 2020, Applied expects net sales to be approximately $4.60 billion, plus or minus $200 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.11 to $1.23.

Tailwinds

  • Net sales are expected to be approximately $4.60 billion, plus or minus $200 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.11 to $1.23.
  • Outlook excludes known charges related to completed acquisitions of $0.01 per share.
  • Outlook includes the normalized tax benefit of share-based compensation of $0.02 per share.
  • Outlook includes a net income tax benefit related to intra-entity intangible asset transfers of $0.02 per share.

Headwinds

  • Outlook does not reflect any items that are unknown at this time.
  • Additional charges related to acquisitions are not included.
  • Other non-operational or unusual items are not reflected.
  • Other tax related items are not included.
  • 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 Q3 2020

Historical avgQ3 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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