Chip equipment titan Applied Materials (AMAT) this afternoon reportedfiscal Q3 revenue and profit that topped analysts' expectations, and forecast this quarter's revenue and profit comfortably above consensus, sending its shares higher in late trading.

Revenue in the three months ended in July rose 33%, year over year, to $3.74 billion, yielding EPS of 86 cents.

Analysts had been modeling $3.69 billion and 84 cents.

For the current quarter, Applied sees revenue in a range of $3.85 billion to $4 billion, and EPS of 86 cents to 94 cents. That compares to the average estimate of analysts of $3.71 billion and 82 cents.

Applied's gross profit margin expanded to 46.6% from 43.7% a year earlier, while operating profit making was up almost 6 points at 28.7%.

Applied's sales in its semiconductor division rose by 42%, to $2.53 billion, market by a surge in tools for DRAM manufacturing. Sales in the display business rose by 31% to $410 million.

CEO Gary Dickerson said the company "has tremendous momentum and a very positive outlook for the future."

"Our markets are growing with a broader set of demand drivers," he added, "and the breadth of Applied’s technology enables us to play a larger and more valuable role advancing the innovation roadmap in semiconductor and display."

Applied's shares are up $1.65, or almost 4%, at $44.69, in late trading.

By: DocMemory
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