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May 02, 2021

Applied Materials Q2 2021 Earnings Report

Applied Materials reported record quarterly revenue and EPS, driven by broad-based strength in its semiconductor businesses.

Key Takeaways

Applied Materials announced record quarterly revenue of $5.58 billion, up 41 percent year over year. The company's GAAP EPS was $1.43, and non-GAAP EPS was a record $1.63, up 74 percent and 83 percent year over year, respectively.

Record quarterly revenue of $5.58 billion, up 41 percent year over year

GAAP operating margin of 28.3 percent and non-GAAP operating margin of 31.7 percent, up 4.7 points and 7.0 points year over year, respectively

GAAP EPS of $1.43 and record non-GAAP EPS of $1.63, up 74 percent and 83 percent year over year, respectively

Generated $1.19 billion in cash from operations and returned $952 million to shareholders

Total Revenue
$5.58B
Previous year: $3.96B
+41.1%
EPS
$1.63
Previous year: $0.89
+83.1%
Gross Margin
47.5%
Previous year: 44.2%
+7.5%
Operating Margin
28.3%
Previous year: 23.6%
+19.9%
Non-GAAP Gross Margin
47.7%
Previous year: 44.6%
+7.0%
Gross Profit
$2.65B
Previous year: $1.75B
+51.7%
Cash and Equivalents
$6.31B
Previous year: $5.28B
+19.4%
Free Cash Flow
$983M
Previous year: $564M
+74.3%
Total Assets
$24.1B
Previous year: $21.8B
+10.4%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

In the third quarter of fiscal 2021, Applied expects net sales to be approximately $5.92 billion, plus or minus $200 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.70 to $1.82.

Positive Outlook

  • Net sales to be approximately $5.92 billion, plus or minus $200 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.70 to $1.82.
  • 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

  • Excludes any additional charges related to acquisitions
  • Excludes other non-operational or unusual items
  • Excludes other tax related items
  • Outlook does not reflect any items that are unknown at this time
  • The company is not able to predict without unreasonable efforts due to their inherent uncertainty.

Revenue & Expenses

Visualization of income flow from segment revenue to net income