Applied Materials Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Applied Materials, Inc. (NASDAQ:AMAT) will unveil its latest earnings on Thursday, February 16, 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, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 12 cents per share, a decline of 66.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 18 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 12 cents during the last month. Analysts are projecting profit to rise by 38.5% compared to last year’s 80 cents.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting profit of 21 cents per share against a mean estimate of net income of 20 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 26.8% in revenue from the year-earlier quarter to $1.97 billion.

Analyst Ratings: Analysts seem relatively indifferent about Applied Materials with 10 of 19 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 2.8% to $455 million (35 cents a share) from $468 million (35 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 24.4% to $2.18 billion from $2.89 billion.

Key Stats:

A year-over-year revenue decrease in the fourth quarter of the last fiscal year followed a streak of three consecutive quarters of revenue increases. Revenue rose 10.7%in the third quarter of the last fiscal year, 24.7% in the second quarter of the last fiscal year and 45.3% in the first quarter of the last fiscal year.

The decrease in profit in the fourth quarter of the last fiscal year broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose more than threefold in the third quarter of the last fiscal year, 85.2% in the second quarter of the last fiscal year and more than sixfold in the first quarter of the last fiscal year.

Stock Price Performance: Between December 13, 2011 and February 10, 2012, the stock price had risen $2.45 (23.3%), from $10.50 to $12.95. The stock price saw one of its best stretches over the last year between January 3, 2012 and January 12, 2012, when shares rose for eight straight days, increasing 10.3% (+$1.10) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 19% (-$2.39) over that span.

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

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