Applied Materials, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Applied Materials, Inc. (NASDAQ:AMAT) will unveil its latest earnings on Wednesday, August 24, 2011. Applied Materials Inc. is a manufacturer and producer of capital equipments. 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 estimate of analysts is for profit of 33 cents per share, a rise of 94.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 38 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 33 cents during the last month. For the year, analysts are projecting net income of $1.41 per share, a rise of 60.2% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 38 cents per share versus a mean estimate of net income of 37 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.68 billion in revenue this quarter, a rise of 6.3% from the year ago quarter. Analysts are forecasting total revenue of $10.87 billion for the year, a rise of 13.8% from last year’s revenue of $9.55 billion.

Analyst Ratings: Analysts seem relatively indifferent about Applied Materials with 11 of 19 analysts surveyed maintaining a hold rating.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 70.3%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose more than twofold from the year earlier quarter.

Competitors to Watch: Novellus Systems, Inc. (NASDAQ:NVLS), KLA-Tencor Corporation (NASDAQ:KLAC), Lam Research Corporation (NASDAQ:LRCX), Mattson Technology, Inc. (NASDAQ:MTSN), FSI International, Inc. (NASDAQ:FSII), Tegal Corporation (NASDAQ:TGAL), Axcelis Technologies, Inc. (NASDAQ:ACLS), Ultratech, Inc. (NASDAQ:UTEK), CVD Equipment Corporation (NASDAQ:CVV), and ASM Intl. N.V. (NASDAQ:ASMI).

Stock Price Performance: During May 24, 2011 to August 18, 2011, the stock price had fallen $2.64 (-19.4%) from $13.63 to $10.99. It saw one of its worst periods between July 7, 2011 and July 14, 2011 when shares fell for six-straight days, falling 8.7% (-$1.17) over that span. The stock price saw one of its best stretches over the last year between October 26, 2010 and November 5, 2010 when shares rose for nine-straight days, rising 7.4% (+88 cents) over that span. Shares are down $2.92 (-21%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.