Applied Materials (AMAT) Gives Lukewarm Earnings Report
Net sales at Semiconductor giant Applied Materials (AMAT) were up 123 percent over last year’s sales figures, but earnings took a hit from restructuring and other charges in the Energy and Environmental Solutions (EES) segment.
Third-quarter EPS (GAAP) came in at $0.09 after the EES charges. The company predicted it would earn between and $0.10 and $0.14 per share after the EES write-offs. Excluding the EES charges, the company reported earnings of $0.29 per share (non-GAAP).
AMAT anticipated net sales for the fourth quarter to be flat or slightly upwards of 5 percent.
Investors shrugged off the earnings news after the bell and the needle barely moved on the stock after hours.
Applied Materials (NASDAQ: AMAT)
Comments: Except for the “chips” segment, third-quarter net sales came in weaker than last quarter, but still a substantial improvement over year-ago results. On the plus side, the company has overcome the red ink from last year with positive earnings for 2010. The bottom line: sales need to show a stronger growth pattern here to boost the share price.
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