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Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Ken Adams who wrote (7672)

11/14/2019 4:31:28 PM

From: Kirk ©

1 Recommendation

Recommended By
mary-ally-smith

Respond to of 26710

AMAT called the bottom with flat revenue quarter over quarter and higher revenue predicted for this quarter. I'll say more in my next newsletter but the stock is up >$2 or 4% in after hours.

APPLIED MATERIALS ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2019 RESULTS
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Quarterly revenue of $3.75 billion Quarterly
GAAP EPS of $0.75 and non-GAAP EPS of $0.80
Returns $3.17 billion to shareholders in fiscal 2019SANTA CLARA, Calif., Nov. 14, 2019

(GLOBE NEWSWIRE) -- Applied Materials, Inc. (NASDAQ:AMAT) today reported results for its fourth quarter and fiscal year ended Oct. 27, 2019.

Fourth Quarter Results

Applied generated revenue of $3.75 billion. On a GAAP basis, the company recorded gross margin of 43.5 percent, operating income of $864 million or 23.0 percent of net sales, and earnings per share (EPS) of $0.75.

On a non-GAAP adjusted basis, the company reported gross margin of 43.8 percent, operating income of $888 million or 23.7 percent of net sales, and EPS of $0.80.

The company returned $694 million to shareholders including $500 million in share repurchases and dividends of $194 million.

Full Year Results

In fiscal 2019, Applied generated revenue of $14.61 billion. On a GAAP basis, the company recorded gross margin of 43.7 percent, operating income of $3.35 billion or 22.9 percent of net sales, and EPS of $2.86.

On a non-GAAP adjusted basis, the company reported gross margin of 44.0 percent, operating income of $3.43 billion or 23.5 percent of net sales, and EPS of $3.04.

The company generated $3.25 billion in cash from operations, paid dividends of $771 million and used $2.40 billion to repurchase 60 million shares of common stock.

“Applied Materials’ fourth quarter results reflect a healthy uptick in demand for semiconductor equipment, combined with strong execution across the company,” said Gary Dickerson, president and CEO. “The semiconductor industry is increasingly adopting a new playbook for improving chip performance, power, area and cost, and we are investing in unique solutions to enable our customers’ success in the AI-Big Data era.”

Results Summary

									Change
	Q4 FY2019		Q4 FY2018		FY2019		FY2018		Q4 FY2019 vs. Q4 FY2018		FY2019 vs. FY2018
	(In millions, except per share amounts and percentages)
Net sales	$	3,754	$	3,759	$	14,608	$	16,705	—	%	(13	)%
Gross margin	43.5%		44.1%		43.7%		45.0%		(0.6) points		(1.3) points
Operating margin	23.0%		23.7%		22.9%		26.9%		(0.7) points		(4.0) points
Net income	$	698	$	757	$	2,706	$	3,038	(8	)%	(11	)%
Diluted earnings per share	$	0.75	$	0.77	$	2.86	$	2.96	(3	)%	(3	)%
Non-GAAP Adjusted Results
Non-GAAP adjusted gross margin	43.8%		45.3%		44.0%		46.1%		(1.5) points		(2.1) points
Non-GAAP adjusted operating margin	23.7%		25.1%		23.5%		28.1%		(1.4) points		(4.6) points
Non-GAAP adjusted net income	$	744	$	837	$	2,875	$	4,294	(11	)%	(33	)%
Non-GAAP adjusted diluted EPS	$	0.80	$	0.85	$	3.04	$	4.18	(6	)%	(27	)%

Applied adopted Accounting Standards Update 2014-09, Revenue from Contracts with Customers (ASC 606), as of the first day of fiscal 2019 using the full retrospective method. Applied also adopted Accounting Standards Update 2017-07, Compensation—Retirement Benefits, as of the first day of fiscal 2019 using the retrospective method. All prior periods included in the unaudited consolidated condensed balance sheet as of Oct. 28, 2018, and the unaudited consolidated condensed statements of operations and cash flows for the three and twelve months ended Oct. 28, 2018, were restated under the new standards.

A reconciliation of the GAAP and non-GAAP adjusted results is provided in the financial tables included in this release. See also “Use of Non-GAAP Adjusted Financial Measures” section.

Business Outlook

In the first quarter of fiscal 2020, Applied expects net sales to be approximately $4.10 billion, plus or minus $150 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $0.87 to $0.95.

This outlook for non-GAAP adjusted diluted EPS excludes known charges related to completed acquisitions of $0.01 per share and includes net income tax benefit related to intra-entity intangible asset transfers of $0.03 per share, but does not reflect any items that are unknown at this time, such as any additional charges related to acquisitions or other non-operational or unusual items, as well as other tax related items, which we are not able to predict without unreasonable efforts due to their inherent uncertainty.

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