Applied Materials Earnings: Here’s Why Shares are Up 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 up 2.4%.

Applied Materials Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 0% to $0.06 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Decreased 28.14% to $1.57 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Applied Materials Inc. reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $0.03. It beat the average revenue estimate of $1.55 billion.

Quoting Management:“We executed well through the bottom of this industry investment cycle and, with our semiconductor orders up over 80 percent from the previous quarter, we are optimistic about the potential of our markets this year,” said Mike Splinter, chairman and chief executive officer. “2013 looks to be another strong year for mobile products like smartphones and tablets, and customers are increasingly turning to Applied to help solve the technology challenges they face in this growing market.”

Key Stats (on next page)…

Revenue decreased 4.43% from $1.65 billion in the previous quarter. EPS decreased 0% from $0.06 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.16 to a profit $0.1. For the current year, the average estimate has moved down from a profit of $0.68 to a profit of $0.55 over the last ninety days.

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