Applied Materials Posts Strong Q1 Results Despite Earnings Dip

Published 6 hours agoAMAT

Applied Materials Posts Strong Q1 Results Despite Earnings Dip

Applied Materials reported robust financial performance for the first quarter of fiscal year 2025. The company achieved a revenue of $7.17 billion, marking a 7% increase compared to the same period last year. Additionally, both the GAAP gross margin of 48.8% and the non-GAAP gross margin of 48.9% saw an improvement of one percentage point year-over-year. However, the GAAP earnings per share fell by 40% to $1.45, whereas the non-GAAP EPS rose 12% to $2.38.

In further detail, Applied Materials reported an operating margin of 30.4% GAAP and 30.6% non-GAAP, both climbing by 1.1 percentage points from the previous year. The company generated $925 million in cash from operations and returned $1.64 billion to its shareholders, which included $1.32 billion in share repurchases and $326 million in dividends. Reuters highlighted that the firm is keeping an eye on U.S. export restrictions that could impact future revenue.

As the company looks forward to its second quarter, it projects revenue around $7.1 billion, considering the potential implications of recent U.S. export restrictions on semiconductor equipment to China. Amid these developments, Applied Materials' stock price is currently at $174.75, having experienced minor fluctuations throughout the trading session.

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