Applied Materials Beats 3Q Expectations Despite Coronavirus
August 13 2020 - 4:58PM
Dow Jones News
By Micah Maidenberg
Applied Materials Inc. said sales rose 23% in its latest
quarter, as the developer of equipment used to fabricate
semiconductor chips shrugged off challenges posed by the Covid-19
pandemic.
In June, the company's finance chief said at an investor
conference that the coronavirus had introduced another layer of
complexity into how Applied's customers were thinking about their
businesses but characterized the overall demand environment as
strong.
Overall, Applied reported more than $4.39 billion in sales for
its fiscal third quarter that ended July 26, up from $3.56 billion
in the comparable period in 2019. Analysts predicted $4.19 billion
in sales, according to FactSet.
Net income rose to $841 million, or 91 cents a share, from $571
million, or 61 cents a share, the year earlier. The company's
adjusted profit of $1.06 a share was ahead of the consensus
estimate of 95 cents.
"Applied Materials is operating at pre-COVID levels of
productivity," Chief Executive Gary Dickerson said.
The company said it spent $200 million on share repurchases in
the quarter, a departure from the many other companies that have
halted stock buyback programs due to uncertainty caused by the
pandemic.
Applied reported some temporary incremental higher costs for
employee compensation because of the pandemic.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
August 13, 2020 16:43 ET (20:43 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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