Applied Materials, Inc. AMAT reported a third-quarter earnings beat on Thursday.

Adjusted earnings came in at 74 cents per share, beating estimates by 4 cents. Sales came in at $3.56 billion, beating estimates by $40 million.

"Applied Materials is delivering solid financial performance in a market environment that remains challenging for the time being," said CEO Gary Dickerson. "We are excited about the company's future opportunities and are fully funding our R&D programs to develop new products and capabilities that will accelerate customers' roadmaps and underpin our growth in the years ahead."

Highlights

• $724 million returned to shareholders
• Gross margin of 43.7%
• Operating income of $820 million

Applied Materials shares traded higher by 2% to $48.11 in the after-hours session. The stock closed at $47.16 per share.