What to Expect from Applied Materials

Before you go, we thought you'd like these...
Before you go close icon

Applied Materials (NAS: AMAT) is expected to report Q1 earnings on Feb. 13. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Applied Materials's revenues will wane -29.2% and EPS will shrink -83.3%.

The average estimate for revenue is $1.55 billion. On the bottom line, the average EPS estimate is $0.03.


Revenue details
Last quarter, Applied Materials booked revenue of $1.65 billion. GAAP reported sales were 25% lower than the prior-year quarter's $2.18 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.06. GAAP EPS were -$0.42 for Q4 versus $0.35 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 36.5%, 250 basis points worse than the prior-year quarter. Operating margin was -1.5%, 1,850 basis points worse than the prior-year quarter. Net margin was -31.3%, 5,220 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $7.75 billion. The average EPS estimate is $0.59.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,016 members out of 2,132 rating the stock outperform, and 116 members rating it underperform. Among 478 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 456 give Applied Materials a green thumbs-up, and 22 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Materials is outperform, with an average price target of $12.97.

Is Applied Materials the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

The article What to Expect from Applied Materials originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners