Applied Materials, Inc.
) is set to report second-quarter 2014 results on May 15. Last
quarter, the company posted a 4.6% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
The company's first-quarter earnings exceeded the Zacks
Consensus Estimate by a penny. Revenues of $2.19 billion were up
10.2% sequentially and 20.8% year over year, benefiting from the
proliferation of mobile devices.
The first quarter was strong for Applied Materials in terms of
margin growth, driven by improving mix of higher-value products in
semiconductor and display, as well as material cost
For the second quarter, Applied Materials expects revenues to be
up 3-10% with the non-GAAP earning per share coming in within 25-29
cents a share.
Our proven model does not conclusively show that Applied
Materialswill beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 28 cents. Hence, the difference is 0.00%.
AMAT has a Zacks Rank #3 (Hold) which when combined with a 0.00%
ESP, makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
You could consider other stocks with a positive earnings ESP and
a Zacks Rank #1, 2 or 3 such as:
Sanderson Farms, Inc.
), with Earnings ESP of +3.75% and a Zacks Rank #1 (Strong
), with Earnings ESP of +9.43% and a Zacks Rank #1.
RSP Permian, Inc.
), with Earnings ESP of +11.11% and a Zacks Rank #1.
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APPLD MATLS INC (AMAT): Free Stock Analysis
ENCANA CORP (ECA): Free Stock Analysis Report
RSP PERMIAN INC (RSPP): Free Stock Analysis
SANDERSON FARMS (SAFM): Free Stock Analysis
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