Here’s what Applied Materials’ Q3 earnings report tells us

Applied Materials Inc (NASDAQ: AMAT) reported record results for its fiscal third quarter on Thursday. Shares of the company weren’t much bothered in after-hours trading despite a Q4 guidance that topped Wall Street estimates.

Financial performance

Applied Materials said its net income in the third quarter printed at $1.72 billion that translates to $1.87 per share. In the comparable quarter of last year, its net income was capped at $841 million or 91 cents per share.

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On an adjusted basis, the U.S. company that makes equipment to manufacture semiconductors earned $1.90 versus the year-ago figure of $1.06 per share. Applied Materials generated $6.2 billion in revenue versus the year-ago figure of $4.4 billion.

According to FactSet, experts had forecast $1.77 of EPS on $5.94 billion of revenue. In other semiconductor-related news, Toyota said on Thursday it will produce fewer vehicles in September due to the global chip shortage.

Q4 guidance and other notable figures

For the fiscal fourth quarter, Applied Materials now forecast up to $6.58 billion of sales. It expects its adjusted EPS to fall between $1.87 and $2.01 in Q4. In comparison, analysts are calling for $1.81 of adjusted per-share earnings on $6.04 billion in sales.

The California-based company valued its cash from operations at $1.69 billion and return to shareholders at $1.72 billion, including $219 million in dividends and $1.5 billion in share buybacks.

Foundry, logic, and other sales made up 63% of the total quarterly sales. DRAM and flash memory made up 20% and 17%, respectively, as per the earnings press release.

CEO Gary Dickerson’s remarks

Commenting on the financial update, CEO Gary Dickerson said:

“Applied Materials delivered record performance as long-term trends fuelled by the digital transformation of the economy drive strong, secular demand for semiconductors. Applied has the broadest and most enabling portfolio of technologies to accelerate our customers’ roadmaps, putting us in a great position to outperform our markets again in 2021 and the years ahead.”