Applied Materials Exceeds Earnings Expectations, Shares Surge 10%
Positive Earnings Report
Applied Materials (NASDAQ:) announced better-than-expected financial results for the first quarter of 2024, leading to a remarkable 10% increase in its stock price during after-hours trading on Thursday.
Strong Financial Performance
The provider of materials engineering solutions delivered an earnings per share (EPS) of $2.13 for the quarter, surpassing analysts’ projections of $1.90. Additionally, the company’s revenue reached $6.71 billion, outperforming the consensus estimate of $6.48 billion.
Robust Operational Metrics
AMAT also disclosed a $2.33 billion cash generation from operations in the quarter, with a non-GAAP operating margin of 29.5%, maintaining stability compared to the previous year.
Upbeat Outlook for FQ2 2024
Looking ahead to the second quarter of 2024, Applied Materials anticipates an EPS range of $1.79 to $2.15, exceeding the consensus forecast of $1.78. The revenue guidance stands at approximately $6.5 billion, with a variation of plus or minus $400 million, in contrast to the analysts’ expectation of $6.32 billion.
Company’s CEO Expresses Confidence
Gary Dickerson, President and CEO of Applied Materials, affirmed, “Applied Materials delivered strong results in the first quarter of fiscal 2024 and has outperformed our markets for the fifth consecutive year. Our leadership positions at key semiconductor inflections support continued outperformance as customers ramp next-generation chip technologies critical to AI and IoT over the next several years.”
