Applied Materials Delivers Beat Across The Board, Issues Strong Guidance, Shares Jump

Applied Materials Inc AMAT shares are trading higher in Thursday's after-hours session on the heels of the company's fiscal third-quarter results. Here's a rundown of the report and a look at what's driving shares higher after the close.

What Happened: Applied Materials said third-quarter revenue fell 1% year-over-year to $6.42 billion, which beat the consensus estimate of $6.16 billion, according to Benzinga Pro. 

The company reported quarterly earnings of $1.90 per share, which beat analyst estimates of $1.74 per share.

The gross margin came in at 46.3%. Applied Materials said it generated $2.58 billion in cash from operations during the quarter. 

"Over the past several years, we have focused our strategy and investments on key technologies to accelerate the Internet of Things and AI era, enabling us to consistently deliver strong results in 2023 and positioning Applied Materials for sustainable outperformance," said Gary Dickerson, president and CEO of Applied Materials.

Applied Materials sees fourth-quarter revenue of $6.51 billion, plus or minus $400 million, versus estimates of $5.86 billion. Adjusted earnings are expected to be between $1.82 and $2.18 per share versus estimates of $1.61 per share.

Shares appear to be reacting favorably to better-than-expected results, paired with a strong outlook. Management will hold a conference call to discuss these results at 4:30 p.m. ET.

See Also: Semiconductor Supplier Synopsys Announces New CEO, Stock Rises Following Q3 Beat

AMAT Price Action: Applied Materials shares were up 2.66% after hours at $141.25 at the time of publication, according to Benzinga Pro.

Photo: Tom from Pixabay.