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