Applied Materials, Inc.
) is set to report fourth-quarter 2013 results on Nov 14. Last
quarter, it posted a 5.3% negative surprise. Let's see how things
are shaping up for this announcement.
Growth Factors this Past Quarter
The company's third-quarter earnings missed the Zacks
Consensus Estimate by 4 cents due to lower volumes. Revenues were
also disappointing, missing the estimate by 4.2% due to seasonal
softness in Silicon Systems Group and Energy and Environmental
Solutions, partially offset by increased demand in the Display
The second quarter was weak for Applied in terms of margin
growth. This was mainly due to unfavorable mix in the SSG segment
that was partially offset by lower variable expenses and
The company provided cautious fourth-quarter guidance, with
revenues expected to flat with the third quarter (slightly softer
than seasonal, especially considering management's statement that
there was risk to the downside).
Our proven model does not conclusively show that Applied
Materials will beat earnings this quarter. This is because a
stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 18 cents. Hence, the difference is 0.00%.
Zacks Rank #4 (Sell):
We caution against stocks with Zacks Ranks #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:
Best Buy Co., Inc.
), with Earnings ESP of +18.18% and a Zacks Rank #1 (Strong
Dish Network Corp.
), with Earnings ESP of +4.76% and a Zacks Rank #2 (Buy).
Hilltop Holdings Inc.
), with Earnings ESP of +3.23% and a Zacks Rank #2(Buy).
APPLD MATLS INC (AMAT): Free Stock Analysis
BEST BUY (BBY): Free Stock Analysis Report
DISH NETWORK CP (DISH): Free Stock Analysis
HILLTOP HLDGS (HTH): Free Stock Analysis
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