Shares of Applied Materials (AMAT) jumped after the maker of manufacturing equipment for semiconductors reported quarterly results and issued a positive outlook for its future financial results.

QUARTERLY REPORT: Applied Materials reported Q1 earnings per share of 26c against expectations for 25c, and revenue of $2.26B versus estimates of $2.24B. The company also forecast Q2 EPS of 30c-34c, ahead of the 26c analyst consensus, and said it expects a 5%-10% jump in revenue from the previous quarter. Commenting on the results, Chief Executive Gary Dickerson said, “As the market moves into the sweet spot for Applied’s materials engineering technology, we see strong demand for our semiconductor, display and service businesses. We are maintaining a positive outlook for 2016 as our customers make strategic, inflection-driven investments that play to our strengths.”

BULLISH INDUSTRY OUTLOOK: Speaking on a subsequent conference call, Dickerson explained that the company is seeing “dramatic” technology changes within the semiconductor and display industries. As Applied’s clients race to make advances in so-called 3D NAND memory, 10 nanometer computer chips, and OLED displays, the company’s position as an enabler of those advances “creates great opportunities,” according to Dickerson.

Applied has traditionally been more concentrated in the semiconductor space, but the CEO took care to note that his checks with display companies make it clear the industry is becoming increasingly dependent on the type of materials innovation that Applied can offer. While still mindful of global economic risks, Dickerson comfortably forecast 2016 wafer equipment and foundry spending in line with levels seen last year, explaining that the industry is investing around the aforementioned inflections in smaller chips and 3D NAND memory as companies battle for leadership in the new technologies.

Echoing that bullish outlook, finance chief Bob Halliday added, “Based on the demand outlooks of our customers, I believe we’ll make significant progress this year towards our 2018 financial model, and we’ll deliver very attractive cash returns.” China, recently a locus of growth fears, was also cast in a positive light by Dickerson, who said he is seeing growth in revenue and orders from local and multinational manufacturers in the region.

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