Applied Materials, Inc. (NASDAQ: AMAT) shares rose after the company reported upbeat earnings for its third quarter and issued a strong outlook for the current quarter.
The Santa Clara, California-based company, which celebrates its 50th corporate anniversary in November, reported Thursday record results.
The company grew net sales by 33% to $3.74 billion; increased gross margin by 3.1 points to 45.4% grew operating margin by 6.2 points to 27.3%; and increased earnings per share (EPS) by 85% to 85 cents.
Applied also reported that, on a non-GAAP adjusted basis, it increased gross margin by 2.9 points to 46.6%, grew operating margin by 5.9 points to 28.7%, and increased EPS by 72% to 86 cents.
The company generated a record $1.37 billion in cash from operations, which represented 36% of revenue, and returned $482 million to shareholders through stock repurchases and cash dividends.
To quote CEO Gary Dickerson, “With revenue and profits at all-time highs, Applied has tremendous momentum and a very positive outlook for the future.
“Our markets are growing with a broader set of demand drivers, and the breadth of Applied’s technology enables us to play a larger and more valuable role advancing the innovation roadmap in semiconductor and display.”
The company adds that, In the fourth quarter of fiscal 2017, Applied expects net sales to be in the range of $3.85 billion to $4.0 billion; the midpoint of the range would be an increase of about 19%, year over year.
Applied shares neared the end of trading for the week at $44.38, up $1.26, or 2.9%, from Thursday’s close.