Applied Materials Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Applied Materials (NASDAQ:AMAT) will unveil its latest earnings on Thursday, November 15, 2012. 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. .

Applied Materials Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 3 cents per share, a decline of 85.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 3 cents during the last month. Analysts are projecting profit to rise by 44.6% compared to last year’s 72 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 2 cents, coming in at profit of 24 cents a share versus the estimate of net income of 22 cents a share. It marked the fourth straight quarter of beating estimates.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

A Look Back: In the third quarter, profit fell 54.2% to $218 million (17 cents a share) from $476 million (36 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 15.9% to $2.34 billion from $2.79 billion.

Wall St. Revenue Expectations: On average, analysts predict $1.58 billion in revenue this quarter, a decline of 27.5% from the year-ago quarter. Analysts are forecasting total revenue of $8.66 billion for the year, a decline of 17.7% from last year’s revenue of $10.52 billion.

Stock Price Performance: Between September 14, 2012 and November 9, 2012, the stock price had fallen $1.38 (-11.4%), from $12.04 to $10.67. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 19, 2012, when shares rose for 10 straight days, increasing 6.9% (+82 cents) over that span. It saw one of its worst periods between April 27, 2012 and May 18, 2012 when shares fell for 16 straight days, dropping 13.9% (-$1.67) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.44 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: With six analysts rating the stock as a buy, two rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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 by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is Gold Set to Benefit from Obama’s Re-Election?

Is Exxon’s Stock Priced Low Enough to Buy?

Here’s How Ford Will Dethrone Toyota