Applied Materials Q2 Earnings Fall Short, Revenue Beats Expectations
Key Takeaways
- Applied Materials reported earnings per share of $2.12, beating analyst expectations of $2.08.
- Revenue for the quarter was $6.72 billion, also beating estimates of $6.67 billion.
- The company's quarterly revenue remained flat compared to the same quarter last year.
- Applied Materials generated $2.39 billion in cash from operations and distributed $1.19 billion to shareholders.
- Analysts expect Applied Materials' revenue to grow 3.8% year-over-year to $6.67 billion in the current quarter.
Financial Performance
Applied Materials reported adjusted earnings per share of $2.12 on sales of $6.72 billion for the second quarter of fiscal 2023.
This represents an increase in earnings per share compared to the year-earlier period, when the company earned $2.02 per share on sales of $6.28 billion.
Applied Materials generated $2.39 billion in cash from operations during the quarter and distributed $1.19 billion to shareholders in the form of dividends and share repurchases.
Outlook
For the current quarter, analysts are expecting Applied Materials' revenue to grow 3.8% year-over-year to $6.67 billion.
Earnings per share are expected to decline slightly to $2.08, reflecting the company's continued investment in research and development.
Applied Materials remains optimistic about the long-term growth prospects for the semiconductor industry, driven by increasing demand for chips in a wide range of applications.
Conclusion
Applied Materials' second-quarter earnings results were mixed, with earnings per share beating expectations but revenue remaining flat year-over-year.
The company's strong cash flow generation and continued investment in research and development position it well for future growth.
Analysts remain positive on Applied Materials' long-term prospects, given the increasing demand for chips in a wide range of applications.
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