Applied Materials Details Its Strategy; Unveils Financial Targets For FY19

(RTTNews) - At its 2016 Analyst Day, Applied Materials, Inc. (AMAT) detailed its strategy to drive sustainable growth and announced target non-GAAP adjusted earnings per share of $2.45 to $3.17 for fiscal 2019, with a midpoint of $2.80. This would represent compound earnings growth of approximately 17 percent over the next three years. It outlines plans to drive 50 percent growth in display business to $1.8 billion by fiscal 2019.

"We are raising the ceiling on our financial model based on our confidence that we have the right capability, strategy and operating model to deliver sustainable growth in the near and long term," said Robert Halliday, senior vice president and CFO.

Applied now expects to achieve a 4-point gain in its share of wafer fab equipment or WFE spending and nearly double its display business, from 2012 through 2016. By delivering enabling service products to support customers as they make these challenging technology transitions, the company expects to grow its services business revenue by $600 million from fiscal 2013 through 2016.