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Jan 28, 2024

Applied Materials Q1 2024 Earnings Report

Applied Materials reported flat revenue and increased EPS year over year for the first quarter of fiscal year 2024.

Key Takeaways

Applied Materials announced its Q1 2024 results, reporting revenue of $6.71 billion, which remained flat compared to the previous year. GAAP EPS increased by 19% to $2.41, while non-GAAP EPS increased by 5% to $2.13. The company generated $2.33 billion in cash from operations.

Revenue was $6.71 billion, flat year over year.

GAAP operating margin was 29.3 percent, up 0.1 points year over year.

GAAP EPS was $2.41, up 19 percent year over year.

Generated $2.33 billion in cash from operations.

Total Revenue
$6.71B
Previous year: $6.74B
-0.5%
EPS
$2.13
Previous year: $2.03
+4.9%
Gross Margin
47.8%
Previous year: 46.7%
+2.4%
Operating Margin
29.3%
Previous year: 29.2%
+0.3%
Non-GAAP Gross Margin
47.9%
Previous year: 46.8%
+2.4%
Gross Profit
$3.2B
Previous year: $3.15B
+1.9%
Cash and Equivalents
$6.85B
Previous year: $3.55B
+93.2%
Free Cash Flow
$2.1B
Previous year: $1.98B
+5.7%
Total Assets
$31.5B
Previous year: $28B
+12.8%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

In the second quarter of fiscal 2024, Applied expects net revenue to be approximately $6.50 billion, plus or minus $400 million. Non-GAAP diluted EPS is expected to be in the range of $1.79 to $2.15.

Positive Outlook

  • Net revenue is expected to be approximately $6.50 billion, plus or minus $400 million.
  • Non-GAAP diluted EPS is expected to be in the range of $1.79 to $2.15.
  • 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 $0.02 per share

Challenges Ahead

  • Excludes known charges related to completed acquisitions of $0.01 per share
  • Does not reflect any items that are unknown at this time.
  • Additional charges related to acquisitions or other non-operational or unusual items.
  • Other tax-related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.

Revenue & Expenses

Visualization of income flow from segment revenue to net income