Applied Materials Inc (NASDAQ:AMAT, XETRA:AP2) reported fiscal first quarter results that beat Wall Street expectations and issued strong guidance, sending its shares up more than 9% in after-hours trading on Thursday.
The semiconductor equipment maker posted revenue of $7.01 billion for the quarter ended January 25, down about 2% year-over-year but above the $6.89 billion consensus estimate.
Adjusted earnings per share were $2.38, flat from a year earlier and above the $2.21 per share estimate.
Applied Materials said its Semiconductor Systems segment achieved record DRAM revenue, while Applied Global Services delivered record services and spares revenue, highlighting resilience in memory-related demand and services.
The company generated $1.69 billion in operating cash flow and returned $702 million to shareholders, including $337 million in share repurchases and $365 million in dividends.
Looking ahead, Applied Materials forecast second-quarter revenue of about $7.65 billion, plus or minus $500 million, and non-GAAP diluted earnings of $2.64 per share, plus or minus $0.20.
At the midpoint, both figures were well above Wall Street estimates of $7.03 billion and $2.29, respectively.
“Applied Materials delivered strong results in our fiscal first quarter, fueled by the acceleration of industry investments in AI computing,” Applied Materials CEO Gary Dickerson said in a statement.
The company’s chief financial officer Brice Hill noted that the company is ensuring it has the capacity to support its customers amid increasing demand. “Over the past several years, we have nearly doubled our system manufacturing capability, strengthened our supply chain and increased our inventories in preparation for market growth,” Hill said.