Semiconductor equipment maker Applied Materials (AMAT) late Thursday missed Wall Street’s targets for its fiscal fourth quarter, citing supply chain challenges. AMAT stock fell in extended trading.
Total revenues from sales are $6.12 billion compared to last prior quarter of 2020 which was $4.6 billion.
On a GAAP basis, the company recorded a gross margin of 48.1 percent, operating income of $2.01 billion or 32.9 percent of net sales, and earnings per share (EPS) of $1.89.
On a non-GAAP adjusted basis, the company reported a gross margin of 48.2 percent, operating income of $2.03 billion or 33.1 percent of net sales, and EPS of $1.94.
The company generated $1.15 billion in cash from operations and returned $1.72 billion to shareholders including $1.50 billion in share repurchases and $216 million in dividends.
- Record annual revenue of $23.06 billion, up 34 percent year over year.
- Record annual GAAP operating margin of 29.9 percent, non-GAAP. operating margin of 31.7 percent, GAAP EPS of $6.40, and non-GAAP EPS of $6.84.
- Quarterly revenue of $6.12 billion, up 31 percent year over year.
- Record quarterly GAAP operating margin of 32.9 percent, non-GAAP. operating margin of 33.1 percent, GAAP EPS of $1.89, and non-GAAP EPS of $1.94.
Applied Materials, which belongs to the Zacks Semiconductor Equipment – Wafer Fabrication industry, posted revenues of $6.12 billion for the quarter ended October 2021, missing the Zacks Consensus Estimate by 3.30%. This compares to year-ago revenues of $4.69 billion. The company has topped consensus revenue estimates three times over the last four quarters.
“Demand for semiconductors and equipment continues to grow as the pandemic accelerates the digital transformation of the economy, and currently, our supply chain cannot keep up,” said Gary Dickerson, President, and CEO. “We expect supply shortages of certain silicon components to persist in the near-term, and managing these constraints in partnership with our suppliers and chipmakers is our top priority.”
“Applied delivered strong growth in fiscal 2021, with overall orders up by 62 percent year over year and Semiconductor Systems orders up 78 percent,” said Bob Halliday, Senior Vice President, and CFO. “The momentum continued as our Semiconductor Systems backlog increased during the fourth quarter from $5.5 billion to $6.7 billion, and we see this strength sustaining into 2022.”
Financial Statement :
APPLIED MATERIALS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| (In millions, except per share amounts) | October 31, 2021 |
October 25, 2020 |
October 31, 2021 |
October 25, 2020 |
|||||||||||
| Net sales | $ | 6,123 | $ | 4,688 | $ | 23,063 | $ | 17,202 | |||||||
| Cost of products sold | 3,178 | 2,558 | 12,149 | 9,510 | |||||||||||
| Gross profit | 2,945 | 2,130 | 10,914 | 7,692 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research, development,,, and engineering | 622 | 560 | 2,485 | 2,234 | |||||||||||
| Marketing and selling | 155 | 131 | 609 | 526 | |||||||||||
| General and administrative | 155 | 156 | 620 | 567 | |||||||||||
| Severance and related charges | (1 | ) | — | 157 | — | ||||||||||
| Deal termination fee | — | — | 154 | — | |||||||||||
| Total operating expenses | 931 | 847 | 4,025 | 3,327 | |||||||||||
| Income from operations | 2,014 | 1,283 | 6,889 | 4,365 | |||||||||||
| Interest expense | 57 | 59 | 236 | 240 | |||||||||||
| Interest and other income, net | 49 | 19 | 118 | 41 | |||||||||||
| Income before income taxes | 2,006 | 1,243 | 6,771 | 4,166 | |||||||||||
| Provision for income taxes | 294 | 112 | 883 | 547 | |||||||||||
| Net income | $ | 1,712 | $ | 1,131 | $ | 5,888 | $ | 3,619 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 1.91 | $ | 1.24 | $ | 6.47 | $ | 3.95 | |||||||
| Diluted | $ | 1.89 | $ | 1.23 | $ | 6.40 | $ | 3.92 | |||||||
| The weighted average number of shares: | |||||||||||||||
| Basic | 898 | 914 | 910 | 916 | |||||||||||
| Diluted | 907 | 921 | 919 | 923 | |||||||||||