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Jan 31, 2021

Applied Materials Q1 2021 Earnings Report

Applied Materials reported record quarterly revenue and non-GAAP EPS, driven by strong demand in the semiconductor business.

Key Takeaways

Applied Materials announced record quarterly revenue of $5.16 billion, up 24 percent year over year. The company reported GAAP EPS of $1.22 and record non-GAAP EPS of $1.39, up 27 percent and 42 percent year over year, respectively. Cash from operations was $1.42 billion.

Record quarterly revenue of $5.16 billion, up 24 percent year over year

GAAP EPS of $1.22, up 27 percent year over year

Record non-GAAP EPS of $1.39, up 42 percent year over year

Generated $1.42 billion in cash from operations

Total Revenue
$5.16B
Previous year: $4.16B
+24.0%
EPS
$1.39
Previous year: $0.98
+41.8%
Gross Margin
45.5%
Previous year: 44.6%
+2.0%
Operating Margin
24.9%
Previous year: 25%
-0.4%
Non-GAAP Gross Margin
45.9%
Previous year: 44.9%
+2.2%
Gross Profit
$2.35B
Previous year: $1.86B
+26.4%
Cash and Equivalents
$6.21B
Previous year: $3.42B
+81.5%
Free Cash Flow
$1.3B
Previous year: $885M
+46.9%
Total Assets
$23.3B
Previous year: $19.8B
+17.9%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

In the second quarter of fiscal 2021, Applied expects net sales to be approximately $5.39 billion, plus or minus $200 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.44 to $1.56.

Positive Outlook

  • Net sales to be approximately $5.39 billion, plus or minus $200 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.44 to $1.56.
  • Excludes known charges related to completed acquisitions of $0.01 per share
  • Includes the normalized tax benefit of share-based compensation of $0.01 per share
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.03 per share

Challenges Ahead

  • Outlook does not reflect any items that are unknown at this time
  • Doesn't include any additional charges related to acquisitions or other non-operational or unusual items
  • Doesn't include other tax related items
  • Unable to predict without unreasonable efforts due to their inherent uncertainty
  • Subject to various risks and uncertainties

Revenue & Expenses

Visualization of income flow from segment revenue to net income