NASDAQ$AMAT

Applied Materials Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Applied Materials reported Q3 2023 results, with revenue of $6.43 billion and GAAP EPS of $1.85.

Applied Materials announced its Q3 2023 results, reporting revenue of $6.43 billion, a 1% decrease year-over-year. The company's GAAP EPS was $1.85, while non-GAAP EPS was $1.90. They generated $2.58 billion in cash from operations and distributed $707 million to shareholders.

  • Revenue was $6.43 billion, down 1% year over year.
  • GAAP operating margin was 28.0% and non-GAAP operating margin was 28.3%, down 1.5 points and 1.7 points year over year, respectively.
  • GAAP EPS was $1.85 and non-GAAP EPS was $1.90, flat and down 2% year over year, respectively.
  • Generated $2.58 billion in cash from operations.

Headline financials

Total Revenue

$6.43B

Previous: $6.52B-1.5%
EPS (adj)

$1.90

Previous: $1.94-2.1%
Non-GAAP Gross Margin

46.4%

Previous: 46.2%+0.4%
Non-GAAP Operating Margin

28.3%

Previous: 30.0%-5.7%
Gross Margin

46.3%

Previous: 46.1%+0.4%
Operating Margin

28.0%

Previous: 29.5%-5.1%
Share Repurchases

$439M

No prior period
Dividends Paid

$268M

No prior period
Capital Expenditures

-$797M

Previous: -$564M-41.3%
Free Cash Flow

$763M

Previous: $1.04B-26.8%
Net Income

$1.56B

Previous: $1.61B-2.9%
Operating Income

$1.8B

Previous: $1.92B-6.3%
Gross Profit

$2.98B

Previous: $3.01B-1.0%
Cash & Equivalents

$6.03B

Previous: $2.96B+103.8%
Total Assets

$30.4B

Previous: $26.2B+16.2%
Stock-Based Comp

$114M

Previous: $95M+20.0%

Revenue & EPS history

Applied Materials · Revenue · Quarterly

$6.43B

Q3 2023-1.5%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Applied Materials · $6.19B total across 3 segments · Q3 2023

  • Semiconductor Systems
    $4.68B-1.2%
  • Applied Global Services
    $1.46B+3.1%
  • Other
    $50M+51.5%

Forward guidance

In the fourth quarter of fiscal 2023, Applied expects net sales to be approximately $6.51 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.82 to $2.18.

Tailwinds

  • Net sales are expected to be approximately $6.51 billion, plus or minus $400 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.82 to $2.18.
  • 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 $0.01 per share
  • Applied Materials is the leader in materials engineering solutions

Headwinds

  • Excludes known charges related to completed acquisitions of $0.01 per share
  • Does not reflect any items that are unknown at this time
  • Additional charges related to acquisitions
  • Other non-operational or unusual items
  • Other tax-related items, which we are not able to predict 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 2023

Historical avgQ3 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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