NASDAQ$AMAT

Applied Materials Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Applied Materials reported strong third quarter results with record revenues and earnings towards the high end of guidance.

Applied Materials announced its Q3 2024 results, reporting a 5% year-over-year increase in revenue to $6.78 billion. GAAP EPS was $2.05, and non-GAAP EPS was $2.12, representing an 11% and 12% increase year-over-year, respectively. The company generated $2.39 billion in cash from operations and distributed $1.19 billion to shareholders through share repurchases and dividends.

  • Revenue reached a record $6.78 billion, up 5% year-over-year.
  • GAAP operating margin was 28.7%, and non-GAAP operating margin was 28.8%, increasing by 0.7 and 0.5 points year-over-year, respectively.
  • GAAP EPS was $2.05, and non-GAAP EPS was $2.12, up 11% and 12% year-over-year, respectively.
  • Cash from operations was $2.39 billion.

Headline financials

Total Revenue

$6.78B

Previous: $6.43B+5.5%
EPS

$2.05

Previous: $1.90+7.9%
Non-GAAP Gross Margin

47.4%

Previous: 46.4%+2.2%
Non-GAAP Operating Margin

28.8%

Previous: 28.3%+1.8%
Gross Margin

47.3%

Previous: 46.3%+2.2%
Operating Margin

28.7%

Previous: 28.0%+2.5%
Capital Expenditures

-$783M

Previous: -$797M+1.8%
Free Cash Flow

$922M

Previous: $763M+20.8%
Net Income

$1.71B

Previous: $1.56B+9.3%
Operating Income

$1.94B

Previous: $1.8B+7.8%
Gross Profit

$3.21B

Previous: $2.98B+7.7%
Cash & Equivalents

$8.29B

Previous: $6.03B+37.6%
Total Assets

$33.6B

Previous: $30.4B+10.6%
R&D Expense

$836M

No prior period
Stock-Based Comp

$132M

Previous: $114M+15.8%

Revenue & EPS history

Applied Materials · Revenue · Quarterly

$6.78B

Q3 2024+5.5%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Applied Materials · $7.91B total across 3 segments · Q2 2026

  • Semiconductor Systems
    $5.97B
  • Applied Global Services
    $1.67B
  • Other
    $280M

Forward guidance

For the fourth quarter of fiscal 2024, Applied Materials expects net revenue to be approximately $6.93 billion, plus or minus $400 million. Non-GAAP diluted EPS is expected to be in the range of $2.00 to $2.36.

Tailwinds

  • Net revenue is expected to be approximately $6.93 billion, plus or minus $400 million.
  • Non-GAAP diluted EPS is expected to be in the range of $2.00 to $2.36.
  • Outlook excludes known charges related to completed acquisitions of $0.01 per share.
  • Outlook includes the normalized tax benefit of share-based compensation of $0.01 per share.
  • Outlook includes a net income tax benefit related to intra-entity intangible asset transfers of $0.02 per share.

Headwinds

  • The outlook does not reflect any items that are unknown at this time.
  • The outlook does not include any additional charges related to acquisitions.
  • The outlook does not include other non-operational or unusual items.
  • The outlook 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 Q3 2024

Historical avgQ3 2024

+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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