Applied Materials Inc. Q2 CY2024 Earnings Report
Key Highlights
- Reported non-GAAP earnings of 1.94 per share, beating analyst estimates of 1.84 per share.
- Revenue increased by 7% year-over-year to 6.75 billion.
- The company's semiconductor systems segment accounted for the majority of revenue, growing 9% year-over-year.
Financial Performance
Applied Materials Inc. (AMAT) reported strong financial results for the second quarter of fiscal 2024, exceeding analyst expectations. The company's non-GAAP earnings per share came in at 1.94, surpassing the consensus estimate of 1.84 per share.
Revenue for the quarter totaled 6.75 billion, representing a 7% increase compared to the same period last year. The growth was primarily driven by the semiconductor systems segment, which accounted for 5.4 billion in revenue, up 9% year-over-year.
Segment Performance
- Semiconductor Systems: This segment, which includes equipment for manufacturing semiconductors, experienced revenue growth of 9% to 5.4 billion due to increased demand for advanced logic and memory chips.
- Applied Global Services: This segment provides maintenance and support services for Applied Materials' equipment. Revenue in this segment declined by 2% to 1.1 billion primarily due to lower demand for legacy products.
- Other: This segment includes revenue from the sale of spare parts and other products. Revenue in this segment decreased by 6% to 228 million.
Outlook
For the third quarter of fiscal 2024, Applied Materials expects non-GAAP earnings per share in the range of 1.82 to 1.98, slightly below analyst estimates. The company anticipates revenue to be between 6.4 billion and 6.8 billion, reflecting continued growth in the semiconductor industry.
Conclusion
Overall, Applied Materials Inc. delivered a solid financial performance in the second quarter of fiscal 2024, surpassing analyst expectations. The company's strong revenue growth and earnings per share beat demonstrate the continued demand for its semiconductor manufacturing equipment. Despite some headwinds in the Applied Global Services segment, the company remains optimistic about the long-term growth prospects of the semiconductor industry.
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