Applied Materials reported impressive results for the fiscal fourth quarter, driven by increased adoption of artificial intelligence. Adjusted earnings per share rose to $2.32 for the three months ending October 27, up from $2.12 a year prior, exceeding the Capital IQ consensus estimate of $2.19. The semiconductor equipment supplier also saw a revenue boost of 5% year-over-year, reaching a record $7.05 billion, which again surpassed analyst expectations of $6.97 billion. Chief Executive Gary Dickerson stated, "Our portfolio of products and services uniquely positions us to enable our customers in their pursuit of AI and energy-efficient computing." The semiconductor systems segment experienced a revenue uptick to $5.18 billion, compared to $4.88 billion last year, while applied global services revenue increased to $1.64 billion from $1.47 billion.
Conversely, revenue from display products dropped to $211 million from $298 million in the fourth quarter of 2023. Looking ahead, Applied Materials projected first-quarter adjusted EPS of $2.29, with a range of plus or minus $0.18, and estimated revenue of $7.15 billion, also with a variance of plus or minus $400 million.
The consensus expectation for normalized EPS stands at $2.27, while revenue is anticipated to hit $7.25 billion. In after-hours trading, shares fell by 4.7%..