Needham & Company Maintains a 'Hold' on Applied Materials (AMAT); Lowers Numbers on Worse-Than-Expected Guidance
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Price: $14.57 +0.21%
Rating Summary:
8 Buy, 4 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
Rating Summary:
8 Buy, 4 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 19 | Down: 23 | New: 29
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Needham & Company maintains a 'Hold' on Applied Materials (NASDAQ: AMAT).
Analyst, Y. Edwin Mok, said, "AMAT reported F3Q12 (Jul) results slightly ahead of Street’s estimates but provided substantially lower guidance. Commentary suggests business will rebound in the January quarter on seasonality, but we believe recovery will be limited to foundry/logic customers coming back to take equipment late in the calendar year. Based on the capacity plan of both logic and memory customers, AMAT sounded more optimistic about CY13. We agree the sector should rebound but are less certain AMAT could outperform peers in the sector recovery. Additionally, we believe Display and EES will remain challenged by the sector weakness in the next few quarters. While F4Q12 is likely the trough due to the “hyper-seasonality” of the quarter, we see little reason to get aggressive here and are maintaining our rating."
FY12 EPS estimate lowered from $0.80 to $0.72. FY13 maintained at $0.96. FY12 revenues lowered from $9.1B to $8.7B and FY13 from $9.54B to $9.4B.
For an analyst ratings summary and ratings history on Applied Materials click here. For more ratings news on Applied Materials click here.
Shares of Applied Materials closed at $11.80 yesterday, with a 52 week range of $9.70-$13.94.
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Analyst, Y. Edwin Mok, said, "AMAT reported F3Q12 (Jul) results slightly ahead of Street’s estimates but provided substantially lower guidance. Commentary suggests business will rebound in the January quarter on seasonality, but we believe recovery will be limited to foundry/logic customers coming back to take equipment late in the calendar year. Based on the capacity plan of both logic and memory customers, AMAT sounded more optimistic about CY13. We agree the sector should rebound but are less certain AMAT could outperform peers in the sector recovery. Additionally, we believe Display and EES will remain challenged by the sector weakness in the next few quarters. While F4Q12 is likely the trough due to the “hyper-seasonality” of the quarter, we see little reason to get aggressive here and are maintaining our rating."
FY12 EPS estimate lowered from $0.80 to $0.72. FY13 maintained at $0.96. FY12 revenues lowered from $9.1B to $8.7B and FY13 from $9.54B to $9.4B.
For an analyst ratings summary and ratings history on Applied Materials click here. For more ratings news on Applied Materials click here.
Shares of Applied Materials closed at $11.80 yesterday, with a 52 week range of $9.70-$13.94.
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