Applied Materials Inc (AMAT) has reported an 157.50 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $824 million, or $0.76 a share in the quarter, compared with $320 million, or $0.29 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $861 million, or $0.79 a share compared with $376 million or $0.34 a share, a year ago. Revenue during the quarter surged 44.73 percent to $3,546 million from $2,450 million in the previous year period. Gross margin for the quarter expanded 414 basis points over the previous year period to 45.12 percent. Total expenses were 73.49 percent of quarterly revenues, down from 82.65 percent for the same period last year. This has led to an improvement of 916 basis points in operating margin to 26.51 percent.
Operating income for the quarter was $940 million, compared with $425 million in the previous year period.
However, the adjusted operating income for the quarter stood at $987 million compared to $470 million in the prior year period. At the same time, adjusted operating margin improved 865 basis points in the quarter to 27.83 percent from 19.18 percent in the last year period.
“Applied Materials delivered the highest quarterly revenue and earnings in our history, and we’ve now set new earnings records for four quarters in a row,” said Gary Dickerson, president and chief executive officer. “Across the company we have tremendous momentum as our markets are strong and getting stronger, and we’re sustainably growing faster than these markets by expanding our served opportunity and gaining share.”
For the third-quarter, Applied Materials forecasts revenue to be in the range of $3,600 million to $3,750 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.79 to $0.87 for the third-quarter.
Operating cash flow improves significantly
Applied Materials Inc has generated cash of $1,544 million from operating activities during the first half, up 124.42 percent or $856 million, when compared with the last year period. The company has spent $1,648 million cash to meet investing activities during the first six months as against cash outgo of $114 million in the last year period.
Cash flow from financing activities was $1,642 million for the first six months as against cash outgo of $2,901 million in the last year period.
Cash and cash equivalents stood at $4,944 million as on Apr. 30, 2017, up 100.16 percent or $2,474 million from $2,470 million on May 01, 2016.
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