By Maria Armental

 

Applied Materials Inc., which makes equipment used to make computer chips, reported record quarterly revenue and gave stronger-than-expected financial guidance, pointing to sustained strong demand driven by investments in information technology and communications infrastructure and boosted by a digital-acceleration transformation during the coronavirus pandemic. Here's what you need to know.

 

PROFIT: Net income in the fiscal first quarter rose to $1.13 billion from $892 million a year earlier. On a per-share basis, profit was $1.22, or $1.39 when adjusted, for the three months ended Jan. 31. Applied had projected $1.20 to $1.32 a share in adjusted profit, while analysts surveyed by FactSet expected $1.27 a share, or $1.28 on an adjusted basis.

 

REVENUE: Net sales rose to $5.16 billion from $4.16 billion a year earlier. Applied had projected about $4.95 billion, while analysts expected about $4.98 billion.

 

OUTLOOK: This quarter, the company projects an adjusted profit of $1.44 to $1.56 a share and $5.19 billion to $5.59 billion in revenue, compared with analysts' projected an adjusted profit of $1.28 a share and $4.96 billion in revenue.

 

DEMAND: Company officials have said they expect customers' investment levels to carry into 2021 and beyond and pointed to an upside from rebounding specialty markets like automotive. On Thursday, Chief Executive Gary Dickerson said in a statement that in the most recent quarter, the company had seen "a continued acceleration of demand in our semiconductor business as major macro and industry trends fuel increasing consumption of silicon across a wide range of markets and applications."

 

Write to Maria Armental at maria.armental@wsj.com

 

(END) Dow Jones Newswires

February 18, 2021 16:28 ET (21:28 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Applied Materials Charts.
Applied Materials (NASDAQ:AMAT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Applied Materials Charts.