Manufacturing equipment provider, Applied Materials, Inc.(
AMAT ) reported a net loss for its fourth quarter
due to acquisition expenses and decline in sales.
The Santa Clara, CA based company reported a fourth quarter net
loss of -$515 million, or 42 cents a share, compared with earnings
of $456 million, or 34 cents a share last year. This is the
company's first reported loss since July 2009. Excluding
acquisition expenses, the company expects earnings of 9 cents,
analysts are expecting EPS of 6 cents.
Revenue was reported at $1.65 billion for the quarter, down from
last years revenue of $2.18 billion. On average, analysts expected
revenue of $1.58 billion.
The company reported that they are expecting the current
quarters sales to decline from the previous quarter. Additionally,
AMAT, being the largest chipmaker in the world, expects the demand
for chips to decline. The company expects the current quarters
revenue to be in the range of $1.4 billion to $1.65 billion.
Analysts on average are expecting sales of $1.77 billion.
The company reported in October that they are planning to cut
900 to 1,300, or 6% to 9% of its staff.
Applied Materials shares were mostly flat during premarket
The Bottom Line
Shares of Applied Materials ( AMAT ) have a 3.50%
dividend yield, based on last night's closing stock price of
$10.30. The stock has technical support in the $9 price area. If
the stock can firm up, we see overhead resistance around the
$11.50-$12.00 price levels.
Applied Materials, Inc.( AMAT ) is not
recommended at this time, holding a Dividend.com DARS™ Rating of
3.1 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 .
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