Applied Materials Announces 4Q, FY 2019 Results

Applied Materials, Inc. reported results for its fourth quarter and fiscal year ended Oct. 27, 2019.

In the fourth quarter of 2019, Applied generated revenue of $3.75 billion. On a GAAP basis, the company recorded gross margin of 43.5%, operating income of $864 million or 23.0% of net sales, and earnings per share (EPS) of $0.75.

On a non-GAAP adjusted basis, the company reported gross margin of 43.8%, operating income of $888 million or 23.7% of net sales, and EPS of $0.80. The company returned $694 million to shareholders including $500 million in share repurchases and dividends of $194 million.

In fiscal 2019, Applied generated revenue of $14.61 billion. On a GAAP basis, the company recorded gross margin of 43.7%, operating income of $3.35 billion or 22.9% of net sales, and EPS of $2.86.

On a non-GAAP adjusted basis, the company reported gross margin of 44.0%, operating income of $3.43 billion or 23.5% of net sales, and EPS of $3.04.

The company generated $3.25 billion in cash from operations, paid dividends of $771 million and used $2.4 billion to repurchase 60 million shares of common stock.

“Applied Materials’ fourth quarter results reflect a healthy uptick in demand for semiconductor equipment, combined with strong execution across the company,” said Gary Dickerson, president and CEO. “The semiconductor industry is increasingly adopting a new playbook for improving chip performance, power, area and cost, and we are investing in unique solutions to enable our customers’ success in the AI-Big Data era.”