NASDAQ$AMAT

Applied Materials Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Applied Materials reported record quarterly revenue and record non-GAAP EPS, despite a slight decrease in GAAP EPS, while also returning significant value to shareholders through share repurchases and dividends.

Applied Materials announced strong Q4 2022 results, featuring record quarterly revenue of $6.75 billion, a 10% increase year-over-year. The company's GAAP EPS was $1.85, while non-GAAP EPS reached a record $2.03. Applied Materials also generated $857 million in cash from operations and returned $1.72 billion to shareholders through share repurchases and dividends.

  • Record quarterly revenue of $6.75 billion, up 10% year-over-year.
  • GAAP EPS of $1.85, a decrease of 2% year-over-year.
  • Record non-GAAP EPS of $2.03, up 5% year-over-year.
  • Returned $1.72 billion to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$6.75B

Previous: $6.12B+10.2%
EPS (adj)

$2.03

Previous: $1.94+4.6%
Non-GAAP Gross Margin

46.0%

Previous: 48.2%-4.6%
Non-GAAP Operating Margin

29.8%

Previous: 33.1%-10.0%
Gross Margin

45.9%

Previous: 48.1%-4.6%
Operating Margin

29.5%

Previous: 32.9%-10.3%
Share Repurchases

$1.5B

Previous: $1.5B+0.0%
Dividends Paid

$223M

Previous: $216M+3.2%
Capital Expenditures

$223M

Previous: $206M+8.3%
Free Cash Flow

$634M

Previous: $942M-32.7%
Net Income

$1.59B

Previous: $1.71B-7.1%
Operating Income

$1.99B

Previous: $2.01B-0.8%
Gross Profit

$3.1B

Previous: $2.95B+5.3%
Cash & Equivalents

$2B

Previous: $5B-60.1%
Total Assets

$26.7B

Previous: $25.8B+3.5%
Stock-Based Comp

$99M

Previous: $74M+33.8%

Revenue & EPS history

Applied Materials · Revenue · Quarterly

$6.75B

Q4 2022+10.2%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Applied Materials · $6.46B total across 2 segments · Q4 2022

  • Semiconductor Systems
    $5.04B+17.0%
  • Applied Global Services
    $1.42B+3.7%

Forward guidance

For the first quarter of fiscal 2023, Applied Materials anticipates net sales of approximately $6.70 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.75 to $2.11.

Tailwinds

  • Net sales to be approximately $6.70 billion, plus or minus $400 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.75 to $2.11.
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.02 per share.
  • Focused on mitigating supply chain constraints.
  • Strategic investments to win the major technology inflections.

Headwinds

  • Includes the expected impact of recently announced U.S. export regulations.
  • Ongoing supply chain challenges.
  • Excludes known charges related to completed acquisitions of $0.01 per share.
  • Does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items.
  • Does not reflect 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 Q4 2022

Historical avgQ4 2022

+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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