Applied Materials Posts Record Margins
Applied Materials reported third-quarter revenue of $9.12 billion, above analyst estimates of $8.99 billion. Adjusted earnings of $3.50 per share also topped estimates of $3.40.
Revenue rose 15% sequentially and 25% from a year earlier. Adjusted gross margin reached a record 50.4%, up 150 basis points year over year. That marked the company’s 13th straight quarter of year-over-year gross margin expansion.
Adjusted operating margin also hit a record 34%, up 330 basis points from a year earlier.
The company generated more than $3 billion in operating cash flow and $2.3 billion in free cash flow. Applied Materials returned $860 million to shareholders through $420 million in dividends and $440 million in share repurchases.
