Applied Materials, Inc. Earnings Cheat Sheet: Fifth Quarter in a Row of Expanding Margins, Net Income Climbs

S&P 500 (NYSE:SPY) component Applied Materials, Inc. (NASDAQ:AMAT) reported net income above Wall Street’s expectations for the third quarter. Applied Materials Inc. is a manufacturer and producer of capital equipments. It provides manufacturing equipment, software and solutions for the global semiconductor, flat panel liquid crystal displays, solar and related industries. .

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

Applied Materials Earnings Cheat Sheet for the Third Quarter

Results: Net income for Applied Materials, Inc. rose to $476 million (36 cents per share) vs. $123.1 million (9 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter.

Revenue: Rose 10.8% to $2.79 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AMAT reported adjusted net income of 35 cents per share. By that measure, the company beat the mean estimate of 33 cents per share. It beat the average revenue estimate of $2.68 billion.

Quoting Management: “Applied delivered solid third quarter results, with earnings and revenue at the upper end of our expectations,” said Mike Splinter, chairman and chief executive officer. “While the fundamental drivers of our markets remain strong, we are seeing softness in our business resulting from the uncertain economic environment and overcapacity in solar.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 58.4%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 8.4 percentage points to 42.5% from the year earlier quarter. Over that span, margins have grown on average 4.9 percentage points per quarter on a year-over-year basis.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the second quarter, by 3 cents in the first quarter, and by 5 cents in the fourth quarter of the last fiscal year.

Competitors to Watch: Novellus Systems, Inc. (NASDAQ:NVLS), KLA-Tencor Corporation (NASDAQ:KLAC), Lam Research Corporation (NASDAQ:LRCX), Mattson Technology, Inc. (NASDAQ:MTSN), FSI International, Inc. (NASDAQ:FSII), Tegal Corporation (NASDAQ:TGAL), Axcelis Technologies, Inc. (NASDAQ:ACLS), Ultratech, Inc. (NASDAQ:UTEK), CVD Equipment Corporation (NASDAQ:CVV), and ASM Intl. N.V. (NASDAQ:ASMI).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)