Applied Materials Earnings: Here’s Why Investors are Selling Shares Now

Applied Materials Inc. (NASDAQ:AMAT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.41%.

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Applied Materials Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 40.74% to $0.16 in the quarter versus EPS of $0.27 in the year-earlier quarter.

Revenue: Decreased 22.35% to $1.97 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Applied Materials Inc. reported adjusted EPS income of $0.16 per share. By that measure, the company beat the mean analyst estimate of $0.13. It beat the average revenue estimate of $1.91 billion.

Quoting Management: “For the second quarter in a row, Applied had strong order performance of over $2 billion,” said Mike Splinter, chairman and chief executive officer. “We are seeing increasing pull from some of our largest strategic customers for our key enabling technologies. We remain committed to driving profitable growth.”

Key Stats (on next page)…

Revenue increased 25.43% from $1.57 billion in the previous quarter. EPS increased 166.67% from $0.06 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.19 and has not changed. For the current year, the average estimate has moved up from a profit of $0.60 to a profit of $0.61 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)