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Oct 30, 2022

Applied Materials Q4 2022 Earnings Report

Applied Materials reported record quarterly revenue and record non-GAAP EPS, despite a slight decrease in GAAP EPS, while also returning significant value to shareholders through share repurchases and dividends.

Key Takeaways

Applied Materials announced strong Q4 2022 results, featuring record quarterly revenue of $6.75 billion, a 10% increase year-over-year. The company's GAAP EPS was $1.85, while non-GAAP EPS reached a record $2.03. Applied Materials also generated $857 million in cash from operations and returned $1.72 billion to shareholders through share repurchases and dividends.

Record quarterly revenue of $6.75 billion, up 10% year-over-year.

GAAP EPS of $1.85, a decrease of 2% year-over-year.

Record non-GAAP EPS of $2.03, up 5% year-over-year.

Returned $1.72 billion to shareholders through share repurchases and dividends.

Total Revenue
$6.75B
Previous year: $6.12B
+10.2%
EPS
$2.03
Previous year: $1.94
+4.6%
Gross Margin
45.9%
Previous year: 48.1%
-4.6%
Operating Margin
29.5%
Previous year: 32.9%
-10.3%
Non-GAAP Gross Margin
46%
Previous year: 48.2%
-4.6%
Gross Profit
$3.1B
Previous year: $2.95B
+5.3%
Cash and Equivalents
$2B
Previous year: $5B
-60.1%
Free Cash Flow
$634M
Previous year: $942M
-32.7%
Total Assets
$26.7B
Previous year: $25.8B
+3.5%

Applied Materials

Applied Materials

Applied Materials Revenue by Segment

Applied Materials Revenue by Geographic Location

Forward Guidance

For the first quarter of fiscal 2023, Applied Materials anticipates net sales of approximately $6.70 billion, plus or minus $400 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.75 to $2.11.

Positive Outlook

  • Net sales to be approximately $6.70 billion, plus or minus $400 million.
  • Non-GAAP adjusted diluted EPS is expected to be in the range of $1.75 to $2.11.
  • Includes a net income tax benefit related to intra-entity intangible asset transfers of $0.02 per share.
  • Focused on mitigating supply chain constraints.
  • Strategic investments to win the major technology inflections.

Challenges Ahead

  • Includes the expected impact of recently announced U.S. export regulations.
  • Ongoing supply chain challenges.
  • Excludes known charges related to completed acquisitions of $0.01 per share.
  • 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.
  • Does not reflect 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