Applied Materials Profit, Revenue, and Forecast all Beat Expectations (AMAT)

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Microchip component manufacturer Applied Materials, Inc. ( AMAT ) late Wednesday said it swung to a third quarter profit on sharply higher revenue, beating analyst expectations.

The Santa Clara, CA-based company reported third quarter net income of $123.1 million, or 9 cents per share, compared with a net loss of $54.9 million, or 4 cents per share, in the year-ago period. Excluding one-time charges, adjusted profit was 29 cents per share.

Revenue more than doubled from last year, to $2.52 billion.


On average, Wall Street analysts expected a smaller adjusted profit of 25 cents per share, on lower revenue of $2.38 billion.

Looking ahead, the company forecast fiscal fourth quarter profits of 28 to 32 cents per share, on implied revenue of $2.52 billion to $2.65 billion. Those results would beat analysts' outlook for 26 cents and $2.43 billion.

Applied materials shares rose 12 cents, or +1.1%, in premarket trading Thursday.

The Bottom Line
We have avoided shares of AMAT, since our early June 2008 coverage began, when the stock was trading at $18.89. The company has a 2.46% dividend yield, based on last night's closing stock price of $11.38. The stock has near-term technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $13 price level. We would remain on the sideline for now.

Applied Materials, Inc. ( AMAT ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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