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Jul 30, 2023

Applied Materials Q3 2023 Earnings Report

Applied Materials reported Q3 2023 results, with revenue of $6.43 billion and GAAP EPS of $1.85.

Key Takeaways

Applied Materials announced its Q3 2023 results, reporting revenue of $6.43 billion, a 1% decrease year-over-year. The company's GAAP EPS was $1.85, while non-GAAP EPS was $1.90. They generated $2.58 billion in cash from operations and distributed $707 million to shareholders.

Revenue was $6.43 billion, down 1% year over year.

GAAP operating margin was 28.0% and non-GAAP operating margin was 28.3%, down 1.5 points and 1.7 points year over year, respectively.

GAAP EPS was $1.85 and non-GAAP EPS was $1.90, flat and down 2% year over year, respectively.

Generated $2.58 billion in cash from operations.

Total Revenue
$6.43B
Previous year: $6.52B
-1.5%
EPS
$1.9
Previous year: $1.94
-2.1%
Gross Margin
46.3%
Previous year: 46.1%
+0.4%
Operating Margin
28%
Previous year: 29.5%
-5.1%
Non-GAAP Gross Margin
46.4%
Previous year: 46.2%
+0.4%
Gross Profit
$2.98B
Previous year: $3.01B
-1.0%
Cash and Equivalents
$6.03B
Previous year: $2.96B
+103.8%
Free Cash Flow
$2.58B
Previous year: $1.26B
+104.9%
Total Assets
$30.4B
Previous year: $26.2B
+16.2%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

In the fourth quarter of fiscal 2023, Applied expects net sales to be approximately $6.51 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 $6.51 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 $0.01 per share
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.01 per share
  • Applied Materials is the leader in materials engineering solutions

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
  • 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