Applied Materials Earnings: Four Straight Quarters of Profit Drops

S&P 500 (NYSE:SPY) component Applied Materials Inc. (NASDAQ:AMAT) reported its results for the second quarter. Applied Materials manufacturers and produces capital equipments, and it provides manufacturing equipment, software, and solutions for the global semiconductor, flat panel liquid crystal displays, solar, and related industries. .

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Applied Materials Earnings Cheat Sheet for the Second Quarter

Results: Net income for the silicon wafers fell to $289 million (22 cents per share) vs. $489 million (37 cents per share) a year earlier. This is a decline of 40.9% from the year-earlier quarter.

Revenue: Fell 11.2% to $2.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Applied Materials Inc. fell short of the mean analyst estimate of 24 cents per share. It beat the average revenue estimate of $2.39 billion.

Quoting Management: “Our strong performance in the quarter was driven by growing global demand for mobile products such as smartphones and tablets,” said Mike Splinter, chairman and chief executive officer. “Applied’s semiconductor products are enabling the next generation of more powerful and feature-rich devices.”

Key Stats:

The company has now seen net income fall in each of the last three quarters. In the first quarter, net income fell 76.9% from the year earlier, while the figure fell 2.8% in the fourth quarter of the last fiscal year.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 6 cents, and in the fourth quarter of the last fiscal year, it was ahead by one cent.

Revenue has dropped for three consecutive quarters. In the first quarter, revenue declined 18.5% to $2.19 billion while the figure fell 24.4% in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 23 cents a share to 26 cents over the last ninety days. For the fiscal year, the average estimate has moved up from 81 cents a share to 94 cents over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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