Applied Materials Q3 Earnings: Revenue Beat, EPS Beat, Demand Being Driven By 'Race For AI Leadership' And More

Applied Materials Inc AMAT reported third-quarter financial results after the market close on Thursday. Here’s a rundown of the report.

Q3 Earnings: Applied Materials reported third-quarter revenue of $6.78 billion, beating the consensus estimate of $6.673 billion. The chip equipment company reported adjusted earnings of $2.12 per share, beating analyst estimates of 2.02 per share.

Applied Materials has now exceeded analyst estimates for revenue and EPS in nine consecutive quarters, according to historical data from Benzinga Pro.

Total revenue was up 5% year-over-year. Applied Materials said it generated $2.39 billion in cash from operations and distributed $1.19 billion to shareholders including $861 million in share repurchases and $331 million in dividends. The company ended the quarter with $8.288 billion in cash and cash equivalents.

“Applied Materials is delivering strong results in 2024 with record revenues in our fiscal third quarter and earnings towards the high end of our guided range,” said Gary Dickerson, president and CEO of Applied Materials.

“The race for AI leadership is fueling demand for our unique and connected portfolio of products and services, positioning Applied to outperform our markets over the longer term.”

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Q4 Guidance: Applied Materials anticipates fourth-quarter revenue of $6.53 billion, plus or minus $400 million, versus estimates of $6.91 billion. The company expects fourth-quarter adjusted earnings to be between $2 and $2.36 per share, versus estimates of $2.14 per share. 

Applied Materials’ management team will hold a conference call at 4:30 p.m. ET to further discuss its quarterly performance.

AMAT Price Action: Applied Materials shares were down 0.72% in after-hours, trading at $209.68 at the time of publication, according to Benzinga Pro.

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