Applied Materials (AMAT) Slips on Weak Outlook Amid Strong Q2 Results
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Price: $492.32 -0.78%
Financial Fact:
Total operating expenses: 596M
Today's EPS Names:
BTTX, VAXX, ELYS, More
Financial Fact:
Total operating expenses: 596M
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Applied Materials, Inc. (Nasdaq: AMAT), is trading lower pre-market following strong second-quarter results, as its outlook fails to inspire investors.
Net income in the quarter grew 85 percent, from $264 million in Q210 to $489 million last quarter, or 37 cents per share. Adjusting for special items, and non-GAAP EPS was a little more robust at 38 cents, beating consensus views calling for profits of 37 cents per share.
Revenues for Applied Materials ripped 24 percent higher to $2.86 billion, stronger than $2.77 billion sought by the Street.
"Applied delivered one of the best quarters in the company’s history, including record net sales in our solar business," said Mike Splinter, chairman and chief executive officer. "While near-term economic conditions have tempered our growth expectations, our outlook for the year remains strong driven by our customers’ plans to invest in the advanced technologies needed to meet growing demand for mobile devices and consumer electronics."
Applied Materials notes that display orders saw an 80 percent sequential increase to $255 million.
Looking ahead, Applied Materials issued a bit of a warning. Third-quarter revenues are expected to come in 3 to 10 percent lower sequentially, or about $2.60 to $2.78 billion based on second-quarter results. Additionally, Applied Materials expects third-quarter non-GAAP EPS in the range of 31 to 37 cents. The outlook is light compared with Street views calling for revs of $2.79 billion and EPS of 37 cents.
Commenting on the quarter and guidance, analysts at Goldman Sachs said "we believe that Applied's disappointing 2QCY11 guidance and commentary about order pushouts from the foundries is evidence that our Cautious view on Semi Equipment is starting to materialize." They continue to expect that the record capex this year from Intel and the foundries will lead to excess supply. The firm reiterated their Neutral rating.
Applied Materials is 2.6 percent lower ahead of the bell.
Net income in the quarter grew 85 percent, from $264 million in Q210 to $489 million last quarter, or 37 cents per share. Adjusting for special items, and non-GAAP EPS was a little more robust at 38 cents, beating consensus views calling for profits of 37 cents per share.
Revenues for Applied Materials ripped 24 percent higher to $2.86 billion, stronger than $2.77 billion sought by the Street.
"Applied delivered one of the best quarters in the company’s history, including record net sales in our solar business," said Mike Splinter, chairman and chief executive officer. "While near-term economic conditions have tempered our growth expectations, our outlook for the year remains strong driven by our customers’ plans to invest in the advanced technologies needed to meet growing demand for mobile devices and consumer electronics."
Applied Materials notes that display orders saw an 80 percent sequential increase to $255 million.
Looking ahead, Applied Materials issued a bit of a warning. Third-quarter revenues are expected to come in 3 to 10 percent lower sequentially, or about $2.60 to $2.78 billion based on second-quarter results. Additionally, Applied Materials expects third-quarter non-GAAP EPS in the range of 31 to 37 cents. The outlook is light compared with Street views calling for revs of $2.79 billion and EPS of 37 cents.
Commenting on the quarter and guidance, analysts at Goldman Sachs said "we believe that Applied's disappointing 2QCY11 guidance and commentary about order pushouts from the foundries is evidence that our Cautious view on Semi Equipment is starting to materialize." They continue to expect that the record capex this year from Intel and the foundries will lead to excess supply. The firm reiterated their Neutral rating.
Applied Materials is 2.6 percent lower ahead of the bell.
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