Applied Materials Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Applied Materials, Inc. (NASDAQ:AMAT) will unveil its latest earnings on Thursday, May 17, 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 profit of 24 cents per share, a decline of 36.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 17 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 24 cents during the last month. Analysts are projecting profit to rise by 27.7% versus last year to 94 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 6 cents, coming in at net income of 18 cents a share versus the estimate of profit of 12 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $2.39 billion in revenue this quarter, a decline of 16.4% from the year-ago quarter. Analysts are forecasting total revenue of $9.51 billion for the year, a decline of 9.6% from last year’s revenue of $10.52 billion.

Analyst Ratings: Analysts seem relatively indifferent about Applied Materials with 10 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the first quarter, profit fell 76.9% to $117 million (9 cents a share) from $506 million (38 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 18.5% to $2.19 billion from $2.69 billion.

Key Stats:

The company has seen net income fall in each of the last two quarters. Net income dropped 2.8% in the fourth quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In the fourth quarter of the last fiscal year, the figure fell 24.4%.

Stock Price Performance: Between February 15, 2012 and May 11, 2012, the stock price fell $1.84 (-14.4%), from $12.82 to $10.98. 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 6.8% (+82 cents) over that span. It saw one of its worst periods between April 27, 2012 and May 11, 2012 when shares fell for 11 straight days, dropping 8.7% (-$1.05) over that span.

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

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