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AMAT Nasdaq· Applied Materials Inc
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AMAT Nasdaq· Applied Materials Inc
Earnings report Q4 2023

AMAT Reports Solid Revenue Growth in Latest Quarter

Segments of revenue

AMAT's latest 10Q report shows that the company achieved a total net sales revenue of $26.52 billion in the most recent fiscal year. This represents a 2.8% increase compared to the previous fiscal year's revenue of $25.79 billion. The company's revenue growth was primarily driven by strategic investments made by semiconductor equipment customers in new capacity and technology transitions. Additionally, the Display and Adjacent Markets segment experienced fluctuations due to uneven spending patterns by customers, resulting in a decrease in net sales for this segment.

Strengths

AMAT demonstrated solid revenue growth in the latest quarter, reflecting the company's ability to capitalize on the increased investments made by semiconductor equipment customers. The company's close collaboration with global customers to design systems and processes that meet their technical and production requirements has contributed to its success. Furthermore, AMAT's strong gross margin of 46.7% indicates effective cost management and efficient operations.

Challenges

Despite the overall revenue growth, AMAT faced challenges in the Display and Adjacent Markets segment. Lower customer investments in display manufacturing equipment for TVs, driven by weak demand for consumer electronic products, resulted in a decrease in net sales for this segment. The uneven spending patterns by customers in this segment also contributed to significant fluctuations quarter-over-quarter and year-over-year.

Noteworthy

AMAT's operating income for the latest fiscal year was $7.65 billion, a slight decrease of $134 million compared to the previous fiscal year. The operating margin decreased by 1.3 percentage points to 28.9%. However, the company's net income increased by $331 million to reach $6.86 billion, indicating effective management of expenses and improved profitability.

Summary

AMAT delivered solid revenue growth in the latest quarter, driven by strategic investments made by semiconductor equipment customers. The company's ability to design systems and processes tailored to customer requirements has been a key strength. However, challenges in the Display and Adjacent Markets segment, including lower customer investments and uneven spending patterns, resulted in fluctuations in net sales. Overall, AMAT's financial performance demonstrates its resilience and ability to adapt to market conditions.

Source documents

Form 10-K  filed on Dec 15, 2023
122 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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