NASDAQ$AMAT

Applied Materials Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Applied Materials achieved record quarterly revenue driven by strong demand for semiconductors.

Applied Materials reported record third-quarter results with revenue of $6.20 billion, up 41% year over year. GAAP EPS was $1.87, and non-GAAP EPS was $1.90, representing increases of 105% and 79% year-over-year, respectively.

  • Record quarterly revenue of $6.20 billion, up 41 percent year over year
  • Record quarterly GAAP operating margin of 32.5 percent, up 7.3 points year over year
  • Record non-GAAP operating margin of 32.7 percent, up 6.3 points year over year
  • Record quarterly GAAP EPS of $1.87 and record non-GAAP EPS of $1.90, up 105 percent and 79 percent year over year, respectively

Headline financials

Total Revenue

$6.2B

Previous: $4.4B+41.0%
EPS (adj)

$1.90

Previous: $1.06+79.2%
Non-GAAP Gross Margin

48.0%

Previous: 45.0%+6.7%
Non-GAAP Operating Margin

32.7%

Previous: 26.4%+23.9%
Gross Margin

47.9%

Previous: 44.5%+7.6%
Operating Margin

32.5%

Previous: 25.2%+29.0%
Share Repurchases

$1.5B

No prior period
Dividends Paid

$219M

No prior period
Capital Expenditures

-$462M

Previous: -$260M-77.7%
Free Cash Flow

$1.25B

Previous: $581M+115.8%
Net Income

$1.72B

Previous: $841M+104.0%
Operating Income

$2.01B

Previous: $1.11B+81.7%
Gross Profit

$2.97B

Previous: $1.96B+51.8%
Cash & Equivalents

$6.07B

Previous: $4.35B+39.4%
Total Assets

$24.5B

Previous: $21.2B+15.6%
Stock-Based Comp

$81M

Previous: $70M+15.7%

Revenue & EPS history

Applied Materials · Revenue · Quarterly

$6.2B

Q3 2021+41%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Applied Materials · $5.77B total across 3 segments · Q3 2021

  • Semiconductor Systems
    $4.45B+52.7%
  • Applied Global Services
    $1.29B+24.4%
  • Other
    $25M+25.0%

Forward guidance

For the fourth quarter of fiscal 2021, Applied expects net sales to be approximately $6.33 billion, plus or minus $250 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.87 to $2.01.

Tailwinds

  • Net sales are expected to be approximately $6.33 billion, plus or minus $250 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.87 to $2.01.
  • Outlook excludes known charges related to completed acquisitions of $0.01 per share.
  • Includes the normalized tax benefit of share-based compensation of $0.01 per share.
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.03 per share.

Headwinds

  • Outlook 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.
  • Uncertainty in predicting items without unreasonable efforts due to their inherent uncertainty.
  • Forward-looking statements are subject to risks and uncertainties.

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 2021

Historical avgQ3 2021

+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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