Applied Materials Q2 Earnings: Revenue Miss, EPS Beat, Solid Guidance — No 'Significant Changes' To Customer Demand

Applied Materials Inc AMAT reported second-quarter financial results after the market close on Thursday. Here’s a look at the key metrics from the quarter.

Q2 Earnings: Applied Materials reported second-quarter revenue of $7.1 billion, missing analyst estimates of $7.13 billion, according to Benzinga Pro. The chip equipment manufacturer reported second-quarter earnings of $2.39 per share, beating analyst estimates of $2.31 per share.

Total revenue was up 7% year-over-year. Gross margin was 49.1% in the second quarter. Applied Materials said it generated $1.57 billion in cash from operations and distributed nearly $2 billion to shareholders via buybacks and dividends during the quarter. The company ended the period with $6.17 billion in cash and cash equivalents.

“We delivered strong performance in our second fiscal quarter with seven percent year-over-year revenue growth, record earnings per share and shareholder distributions of nearly $2 billion,” said Brice Hill, senior vice president and CFO of Applied Materials.

“Despite the dynamic economic and trade environment, we have not seen significant changes to customer demand and are well-equipped to navigate evolving conditions with our robust global supply chain and diversified manufacturing footprint.”

Outlook: Applied Materials expects third-quarter revenue of $7.2 billion, plus or minus $500 million, versus estimates of $7.19 billion. The company expects third-quarter adjusted earnings to be between $2.15 and $2.55 per share, versus estimates of $2.32 per share. 

Applied Materials executives will further discuss the quarter on a conference call set for 4:30 p.m. ET.

AMAT Price Action: Applied Materials shares were down 4.15% at $167.50 in Thursday’s after-hours session at time of publication, according to Benzinga Pro.

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