Applied Materials (NASDAQ:AMAT) reported better-than-expected FQ1 2024 earnings and revenue, resulting in a 10% surge in its shares in after-hours trading Thursday.
The materials engineering solutions provider posted earnings per share (EPS) of $2.13 for the quarter, exceeding analysts' expectations of $1.90. Revenue grew to $6.71 billion, outpacing the consensus estimate of $6.48 billion.
AMAT also reported generating $2.33 billion in cash from operations during the quarter, with a non-GAAP operating margin of 29.5%, which remained stable compared to the previous year.
For FQ2 2024, Applied Materials forecasts its EPS to range between $1.79 and $2.15, slightly above the consensus projection of $1.78.
Revenue is anticipated to be around $6.5 billion, plus or minus $400 million, compared to the $6.32 billion expected by analysts.
“Applied Materials delivered strong results in the first quarter of fiscal 2024 and has outperformed our markets for the fifth consecutive year,” said Gary Dickerson, President and CEO of Applied Materials.
“Our leadership positions at key semiconductor inflections support continued outperformance as customers ramp next-generation chip technologies critical to AI and IoT over the next several years.”