Needham & Company Maintains a 'Hold' on Applied Materials (AMAT); Q2 Review

Needham & Company maintains a 'Hold' on Applied Materials (NASDAQ: AMAT).

Analyst, Y. Edwin Mok, said, "AMAT reported strong F2Q12 (Apr) results but provided sequentially lower revenue guidance, as we had expected (see our 5/15 note, “Downgrade from Buy to Hold on More Cautious Industry Outlook . . .”). Though the company raised its full year outlook to the high end of prior guidance, this actually implies further revenue decline in F4Q12 (Oct). Mgmt confirmed that foundry spending has peaked and memory capex will remain weak in C2H12. While AMAT believes a year-end pick-up of logic (i.e., Intel (Nasdaq: INTC) [Hold-rated]) will enable a flattish C2H12 vs. C1H12, we remain concerned the deceleration of semicap business will result in weaker sales in the next few quarters. We believe AMAT is going through a transitional period as it streamlines its cost structure and integrates Varian, and we see little reason to get aggressive on the stock here until growth resumes."

Mok raises FY12 EPS estimate from $0.90 to $0.93 and FY13 from $1.08 to $1.14.

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 $10.48 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Freedom Broker Upgrades PrimeEnergy Resource (PNRG) to Hold
• Stifel on EyePoint Inc. (EYPT): 'we think these data bode well for LUCIA (expected October) barring another unusual asymmetry'
• BofA Securities Reiterates Buy Rating on Micron Technology (MU); Sees $230+ in EPS by FY30