Applied Materials Beats Estimates, But No Guidance (AMAT)

Investing

Published: November 14, 2007 4:27 pm

Last Updated: March 26, 2020 12:33 pm

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Applied Materials (NASDAQ:AMAT) posted earnings and non-GAAP EPS was $0.34 on revenues of $2.37 Billion. First Call had consensus estimates for this quarter at $0.29 EPS on revenues of $2.38 Billion, while next quarter estimates are $0.27 EPS on revenues of $2.31 Billion.

Applied’s new orders were $2.21 Billion for the quarter, down 18% from $2.69 billion for the fourth quarter of 2006, and down 3% from $2.28 Billion for the third quarter of fiscal 2007. Gross margin was 45.5%, down from 47.1% for the fourth quarter of fiscal 2006, and down from 47.5% for the third quarter of fiscal 2007. Backlog at the end of the fourth quarter of fiscal 2007 was $3.65 billion, up from $3.43 billion at the end of the third quarter of fiscal 2007.

They did address some of the changes in direction we hoped they would. CEO Mike Splinter noted, "…..we enhanced our position in flash memory, entered the thin film solar business with strong demand for the SunFab line, and drove our operating performance to increase earnings per share…. HCT acquisition for precision solar wafering and the launch of our PVD product for flat panel display arrays…."

Shares closed up 1.2% today at $18.84 and shares are up marginally in after-hours trading. Unfortunately, until guidance is out in the conference call, this is an incomplete report. Next quarter’s estimates from First Call are $0.27 EPS on revenues of $2.31 Billion. That new orders component being down 3% sequentially doesn’t send a rocking strong message, but the slight increase in backlog may negate that.

Jon C. Ogg
November 14, 2007

Jon Ogg produces the more detailed 24/7 Wall St. subscriber-based Special Situation Investing Newsletter which covers buyouts, reorganizations, spin-offs and more; he does not own securities in the companies he covers.

Want to Retire Early? Start Here ^(Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.