Applied Materials’ Q2 Profit Surges 85%, but Forecast Falls Short (AMAT)

Share |

Semiconductor equipment maker Applied Materials, Inc. ( AMAT ) late Tuesday posted an 85% jump in second quarter profits, but issued a weaker-than-expected third quarter outlook.

The Santa Clara-based company reported fiscal second quarter net income of $489 million, or 37 cents per share, compared with $264 million, or 20 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 38 cents per share.

Net sales rose 24% from last year to $2.86 billion.

On average, Wall Street analysts expected a slightly smaller profit of 37 cents per share, on lower revenue of $2.77 billion.

Looking ahead, the company forecast implied third quarter profit to range from 31 cents to 37 cents per share, on revenue of $2.57 billion to $2.77 billion. That outlook would miss analyst estimates for 39 cents per share on $2.82 billion in revenue.

Applied Materials shares fell 36 cents, or -2.6%, in premarket trading Wednesday.

The Bottom Line
Shares of Applied Materials ( AMAT ) have a 2.33% dividend yield, based on last night's closing stock price of $13.71. The stock has technical support in the $11-$12 price area. If the shares can firm up, we see overhead resistance around the $15-$16 price levels.

Applied Materials, Inc. ( AMAT ) is not recommended at this time, holding a DARS™ Rating of 3.3 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.

Created by

This article appears in: Investing , Stocks

Referenced Stocks: AMAT

More from

Related Videos



Most Active by Volume

  • $113.99 ▲ 1.77%
    $17.98 unch
  • $7.41 ▲ 2.07%
  • $7.39 ▼ 2.76%
  • $8.30 ▼ 0.36%
  • $8.14 ▲ 3.17%
  • $93.79 ▲ 2.74%
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by