Applied Materials, Inc. (NASDAQ: AMAT) made great progress on Friday morning markets, on reporting reported results for its third quarter.
The Santa Clara, Calif.-based company generated revenue of $4.40 billion. On a GAAP basis, the company recorded gross margin of 44.5%, operating income of $1.11 billion or 25.2% of net sales, and earnings per share (EPS) of $0.91.
On a non-GAAP adjusted basis, the company reported gross margin of 45%, operating income of $1.16 billion or 26.4% of net sales, and EPS of $1.06.
The company returned $402 million to shareholders including $200 million in share repurchases and dividends of $202 million.
CEO Gary Dickerson said, "Thanks to the hard work and agility of our employees and suppliers, Applied Materials is operating at pre-COVID levels of productivity and delivering outstanding financial results. By addressing our customers’ highest value problems, Applied is outperforming today and is positioned to grow faster than our markets over the next several years."
In the fourth quarter of fiscal 2020, Applied expects net sales to be approximately $4.60 billion, plus or minus $200 million. Non-GAAP adjusted diluted EPS is expected to be in the range of $1.11 to $1.23.
Applied claims to be the leader in materials engineering solutions used to produce virtually every new chip and advanced display in the world.
AMAT leaped $4.44, or 6.8%, to $69.51.
