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Applied Materials Inc. (NASDAQ:AMAT) is scheduled to report its Q3 2012 results on August 15, 2012, after the bell. The street expects EPS and revenue of $0.22 and $2.32B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from AMAT and the news from its closest competitors.

Applied Materials Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last four quarters the company has beaten analysts' estimates. In the last quarter it reported $0.27 EPS, beating analyst estimates of $0.24.

Applied Materials Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.22 based on 17 analysts' estimates, down from $0.35 a year ago. Revenue estimates are $2.32B, down from $2.79B a year ago. The median target price by analysts for the stock is $12.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On May 18, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On May 15, 2012, Needham downgraded the company from Buy to Hold.
  • On March 29, 2012, Needham reiterated Buy rating for the company.
  • On February 17, 2012, Stifel Nicolaus reiterated Buy rating for the company.
  • On February 17, 2012, Needham reiterated Buy rating for the company.
  • On February 17, 2012, Barclays Capital reiterated Equal Weight rating for the company.

Latest News

  • On July 10, 2012, Applied Materials, Inc. announced that for third quarter of 2012, it expects guidance to be within previous range. the Company did not revise guidance and clarify that for revenue expect to be at the low end again driven by the change in guidance for SSG. And within the EPS guidance, the Company expect to be in the low end of the range, which is the Company's original range was 21% to 29% so the Company will be in the lower half of that range as the Company currently see things.
  • On May 17, 2012, Applied Materials, Inc. announced that for third quarter of 2012, it expects overall net sales to be flat to down 10% and non-GAAP earnings to be in the range of $0.21 to $0.29 per share (NYSEARCA:EPS).
  • On February 16, 2012, Applied Materials, Inc. announced that for the second quarter of 2012, it expects overall net sales to be up 5% to 15%, and non-GAAP earnings per share to be in the range of $0.20-$0.28 per share.

Competitors

GT Advanced Technologies (NASDAQ:GTAT), KLA-Tencor (NASDAQ:KLAC), Lam Research (NASDAQ:LRCX), and MEMC Electronic Materials (WFR) are peers for comparison for Applied Materials and the table below provides the key metrics for these companies and the industry.

Applied Materials Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

AMAT Chart

AMAT data by YCharts

Competitors' Latest Development

  • On August 2, 2012, KLA-Tencor Corp. announced that its Board of Directors has declared a quarterly cash dividend of $0.40 per share on its common stock payable on September 4, 2012 to KLA-Tencor stockholders of record as of the close of business on August 13, 2012.
  • On July 27, 2012, KLA-Tencor Corp. announced that for the first quarter of 2013, it expects bookings to be in the range of $625-$775 million, revenue to be in the range of $700-$760 million and non-GAAP earnings per share to be in the range of $0.75 to $0.95. According to I/B/E/S Estimates, analysts were expecting the Company to report revenues of $828 million and EPS of $1.16 for the first quarter of 2013.
  • On July 10, 2012, KLA-Tencor Corp. announced that its board of directors has authorized an increase in the level of KLA-Tencor's quarterly dividend from $0.35 to $0.40 per share.
  • On July 9, 2012, SeeNews Renewables reported that SunEdison, a subsidiary of MEMC Electronic Materials, Inc. has divested its 60 Megawatt solar power plant in southern Bulgaria to Malta-based ACF Renewable Energy.
  • On July 2, 2012, Taiwan Semiconductor Manufacturing Co., Ltd. announced that it has acquired a set of equipment from APPLIED MATERIALS SOUTH EAST ASIA PACIFIC LTD for NTD 1,007,585,000, and a set of equipment from KLA-TENCOR CORP for NTD 707,528,000.
  • On June 29, 2012, Southern Company and Turner Renewable Energy founder Ted Turner announced that the companies have acquired and will bring on line a 20 megawatt solar photovoltaic power plant in Nevada.
  • On June 20, 2012, Taiwan Semiconductor Manufacturing Co., Ltd. announced that it has acquired a set of equipment from KLA-TENCOR CORP for NTD 537,210,400, a set of equipment from Lam Research International Sarl for NTD 610,473,180, a set of equipment from Air Liquide Far Eastern for NTD 330,299,630 and a set of equipment from Taiwan Puritic Corp for NTD 419,138,120.
  • On June 13, 2012, Taiwan Semiconductor Manufacturing Co., Ltd. announced that it has acquired a set of equipment from EBARA CORPORATION. for NTD 717,230,682, and a set of equipment from KLA-TENCOR CORP. for NTD 973,548,000, as well as a set of equipment from FSI International INC for NTD 655,924,401.
  • On June 6, 2012, Taiwan Semiconductor Manufacturing Co., Ltd. announced that it has acquired a set of equipment from KLA-TENCOR CORP. for NTD 848,868,800, and a set of equipment from ASML HONG KONG, LTD. for NTD 6,660,822,239, as well as a set of facilities and equipment from ABB Taiwan for NTD 392,157,286.
  • On June 4, 2012, Lam Research Corporation announced that it has completed its merger with San Jose, Calif.-based Novellus Systems, Inc., With the transaction close, Novellus shareholders will receive 1.125 shares of Lam Research common stock for each share of Novellus common stock that they own, in a tax-free exchange.
  • On May 24, 2012, Taiwan Semiconductor Manufacturing Co., Ltd. announced that it has acquired a set of equipment from TOKYO ELECTRON LTD for NTD 740,082,316, a set of equipment from HITACHI KOKUSAI ELECTRIC INC for NTD 545,793,981, a set of equipment from KLA-TENCOR CORP for NTD 1,214,881,060.
  • On May 16, 2012, MEMC Electronic Materials, Inc. announced that it will transition the Chief Financial Officer(NASDAQ:CFO) role to Brian Wuebbels from the Company's current CFO, Mark Murphy.
  • On May 3, 2012, KLA-Tencor Corp. announced that its Board of Directors has declared a quarterly cash dividend of $0.35 per share on its common stock payable on June 1, 2012 to KLA-Tencor stockholders of record as of the close of business on May 14, 2012.
  • On April 27, 2012, KLA-Tencor Corp. announced that for the fourth quarter of 2012, it expects revenue to be in the range of $840-$900 million, and non-GAAP earnings per share in the range of $1.20 to $1.38. According to I/B/E/S Estimates, analysts were expecting the Company to report revenues of $848 million and EPS of $1.25 for the fourth quarter of 2012.
  • On April 19, 2012, Lam Research Corporation announced that for fourth quarter of 2012, it expects revenues of $710 million plus or minus $20 million, and earnings per share of $0.67 plus or minus $0.05. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $713 million and EPS of $0.71 for the fourth quarter of 2012.
  • On April 6, 2012, Taiwan Semiconductor Manufacturing Co., Ltd. announced that it has acquired a set of equipment from KLA-TENCOR CORP. for NTD 904,793,640, a set of equipment from Edwards Limited for NTD 522,447,316, as well as equipment and facilities from AMPOWER INTERNATIONAL ENTERPRISE for NTD 336,980,300.
  • On February 15, 2012, MEMC Electronic Materials, Inc. announced that for the first quarter of 2012, it expects non-GAAP EPS to be roughly in line with fourth quarter 2011 non-GAAP EPS excluding restructuring, impairment, and other charges.

Technical Overview


The stock has a market capitalization of $15.28B and is currently trading at $11.92 with a 52 week range of $9.70 - $13.94. The stock's year-to-date performance has been 12.99%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Applied Materials Reports Q3 Results August 15