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Applied Materials
🇺🇸 NASDAQ:AMAT
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•
Jul 31, 2022

Applied Materials Q3 2022 Earnings Report

Applied Materials reported record quarterly revenue despite supply chain constraints.

Key Takeaways

Applied Materials announced record quarterly revenue of $6.52 billion, a 5% increase year over year. GAAP EPS was $1.85, down 1% year over year, while non-GAAP EPS was $1.94, up 2% year over year. The company generated $1.47 billion in cash from operations and returned $1.23 billion to shareholders.

Record quarterly revenue of $6.52 billion, up 5% year over year.

GAAP EPS of $1.85 and non-GAAP EPS of $1.94, down 1% and up 2% year over year, respectively.

Generated $1.47 billion in cash from operations.

Returned $1.23 billion to shareholders.

Total Revenue
$6.52B
Previous year: $6.2B
+5.2%
EPS
$1.94
Previous year: $1.9
+2.1%
Gross Margin
46.1%
Previous year: 47.9%
-3.8%
Operating Margin
29.5%
Previous year: 32.5%
-9.2%
Non-GAAP Gross Margin
46.2%
Previous year: 48%
-3.7%
Gross Profit
$3.01B
Previous year: $2.97B
+1.3%
Cash and Equivalents
$2.96B
Previous year: $6.07B
-51.3%
Free Cash Flow
$1.26B
Previous year: $1.55B
-18.7%
Total Assets
$26.2B
Previous year: $24.5B
+6.9%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

For the fourth quarter of fiscal 2022, Applied expects net sales to be approximately $6.65 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.82 to $2.18.

Positive Outlook

  • Net sales are expected to be approximately $6.65 billion, plus or minus $400 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.82 to $2.18.
  • Includes the normalized tax benefit of share-based compensation of $0.02 per share
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.03 per share
  • The company feels confident in its ability to navigate macroeconomic headwinds

Challenges Ahead

  • Net sales outlook includes the expected impact of ongoing supply chain challenges.
  • Non-GAAP adjusted diluted EPS excludes known charges related to completed acquisitions of $0.01 per share.
  • Outlook does not reflect any items that are unknown at this time, such as any 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
  • Ongoing supply chain challenges constrained our ability to meet demand

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Applied Materials