Applied Materials Earnings: Here’s Why the Stock is Down Now

Applied Materials Inc. (NASDAQ:AMAT) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.51%.

Applied Materials Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 25% to $0.18 in the quarter versus EPS of $0.24 in the year-earlier quarter.

Revenue: Decreased 15.71% to $1.98 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Applied Materials Inc. reported adjusted EPS income of $0.18 per share. By that measure, the company missed the mean analyst estimate of $0.19. It missed the average revenue estimate of $2.06 billion.

Quoting Management: “Consumers` appetite for mobile devices and larger TVs is driving healthy demand for our semiconductor and display equipment,” said Mike Splinter, chairman and chief executive officer. “We are seeing stronger investment by our memory customers, and our display business booked its highest orders in over two years.”

Key Stats (on next page)…

Revenue increased 0.1% from $1.97 billion in the previous quarter. EPS increased 12.5% from $0.16 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 $0.23 to a profit $0.21. For the current year, the average estimate is a profit of $0.63, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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