APPLIED MATERIALS Reports Third Quarter FY2023 Earnings Results on July 31, 2023.
August 31, 2023
🌥️Earnings Overview
APPLIED MATERIALS ($NASDAQ:AMAT) reported their earnings for the third quarter of FY2023, ending August 17 2023, on July 31 2023. Total revenue for the quarter was USD 6.4 billion, a decrease of 1.5% compared to the same period in the prior year. Net income for the quarter declined 3.1%, amounting to USD 1.6 billion.
Stock Price
At the start of the day, APPLIED MATERIALS stock opened at $139.2 and closed at $137.6, a decrease of 0.5% from the previous closing price of 138.2. The earnings results outlined the company’s financial performance over the past three months, including revenues, net profits, and cash flow from operating activities. The report also provided an insight into APPLIED MATERIALS’ progress made in launching new products and services and expanding into new markets. Management provided a detailed analysis of their strategic objectives and how they aim to achieve them in the coming quarters. Investors were particularly interested in the company’s guidance for the year ahead and their plans to capture growth opportunities in the global market.
Analysts will be closely monitoring the company’s progress in the coming quarters to see if it is able to meet its ambitious targets. Overall, APPLIED MATERIALS’ third quarter FY2023 earnings results provide investors with a comprehensive insight into the company’s financial performance and strategic plans. Investors will be watching closely to see if the company is able to execute on its ambitious plans and generate sustainable growth in the coming quarters. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Applied Materials. More…
| Total Revenues | Net Income | Net Margin |
| 26.54k | 6.44k | 24.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Applied Materials. More…
| Operations | Investing | Financing |
| 8k | -1.24k | -3.69k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Applied Materials. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.41k | 15.32k | 16.83 |
Key Ratios Snapshot
Some of the financial key ratios for Applied Materials are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.7% | 24.8% | 29.1% |
| FCF Margin | ROE | ROA |
| 26.3% | 34.2% | 15.9% |
Analysis
At GoodWhale, we conducted an analysis of APPLIED MATERIALS‘s wellbeing. Our Star Chart ratings showed that APPLIED MATERIALS is strong in asset, dividend, growth, and profitability. After considering the company’s performance, we classified APPLIED MATERIALS as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given APPLIED MATERIALS’s characteristics, we believe that investors looking for steady and moderate returns suitable for long-term investments may be interested in this company. In addition, APPLIED MATERIALS has a high health score of 10/10 considering its cashflows and debt, suggesting that the company is capable of sustaining future operations in times of crisis. More…
Peers
Applied Materials, Inc. and its competitors, Lam Research Corporation, KLA Corporation, and ASML Holding NV, compete in the semiconductor equipment industry. This industry is capital intensive, with high barriers to entry. The four companies have similar business models, but Applied Materials has a slight edge in terms of market share.
– Lam Research Corp ($NASDAQ:LRCX)
Lam Research Corporation is a company that manufactures semiconductor processing equipment. It is headquartered in Fremont, California, and has been in business since 1980. The company has a market capitalization of $51.81 billion as of 2022 and a return on equity of 54.63%. Lam Research Corporation is a leading supplier of wafer processing equipment to the semiconductor industry. The company’s products are used in the manufacturing of integrated circuits (ICs), which are the tiny electronic components that are found in everything from computers to cell phones. Lam Research Corporation’s products are used in all stages of IC production, from the initial deposition of materials on the wafer to the final etching of the completed circuits.
– KLA Corp ($NASDAQ:KLAC)
KLA Corp is a leader in process equipment and services for the semiconductor and nanoelectronics industries. The company has a market cap of $43.23 billion and a return on equity of 126.76%. KLA Corp provides products and services that enable the manufacturing of advanced semiconductor chips. The company’s products are used by customers in the fab process of making chips, including etching, metrology, and inspection. KLA Corp’s services enable customers to optimize their productivity and yield. The company has a strong history of innovation and is a trusted partner to the world’s leading chipmakers.
– ASML Holding NV ($NASDAQ:ASML)
ASML Holding NV is a technology company that manufactures semiconductor processing equipment, which is used in the production of integrated circuits (ICs). ASML’s products are used by customers in the computer, communications, and consumer electronics industries. The company has a market cap of 187.16B as of 2022 and a return on equity of 39.55%. ASML is headquartered in the Netherlands and has offices in Europe, the United States, Asia, and Japan.
Summary
APPLIED MATERIALS‘ third quarter of FY2023 financial results showed a decrease in total revenue by 1.5% and a drop in net income by 3.1% compared to the same period in the previous year. Investors should consider the current market conditions, and the company’s performance relative to its competitors and sector peers, when evaluating the stock for potential investment opportunities. Analysts will also want to keep an eye on the company’s trajectory going forward, to better understand the longer term outlook for the stock.
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