Applied Materials Profit Surges, But Expectations Disappoint Thursday, August 25, 12:40 PM ET
Semiconductor maker Applied Materials (NASDAQ:
AMAT) posted a surge in third quarter earnings late yesterday, but disappointed expectations with its forecast.
Profits rose to $476 million, or $0.36 per share, compared to $123 million, or $0.09 per share, in last yearís third quarter.
Adjusted earnings of $0.35 per share beat analyst expectations.
Revenue rose to $2.79 million from $2.52 million last year, also ahead of estimates.
But, Applied Materials said it expects fourth quarter sales to fall 15% to 30% on a sequential basis, with earnings of $0.16 to $0.24 per share. The outlook misses analyst forecasts.
The company is seeing softness in its business resulting from an uncertain economic environment and an overcapacity in the solar sector, CEO Mike Splinter said.
Applied Materials shares are trading down over 2.7% Thursday.
Is the gloom carrying over to other chips stocks?
The Semiconductor HOLDRS (AMEX:
SMH) is trading up slightly Thursday.
Applied Materials is the third-largest holding in the fund, behind Intel (NASDAQ:
INTC), trading up over .1% Thursday, and Texas Instruments (NASDAQ: TXN), trading down slightly.
Rounding out the top holdings of the fund, Altera (NASDAQ:
ALTR) is trading down about .7%, while Analog Devices (NASDAQ: ADI) trades up over .7%.
The iShares PHLX SOX Semiconductor Sector Index Fund (NASDAQ:
SOXX) is trading down slightly.
For MarketNewsVideo.com, Iím Kristin Bianco.
Tuesday Sector Leaders: Waste Management, Non-Precious Metals & Non-Metallic Mining Stocks
Related symbols: QRHC, HCCI, MTL, CENX
Tuesday Sector Laggards: Agriculture & Farm Products, Oil & Gas Exploration & Production Stocks
Related symbols: SANW, AGRO, DOM, REN
Monday Sector Leaders: Music & Electronics Stores, Entertainment Stocks
Related symbols: CONN, RCII, DWA, LGF
Tuesday's ETF with Unusual Volume: VPU
Related symbols: VPU, XEL, EXC, D, PNM
Tuesday's ETF Movers: XLU, XOP
Related symbols: D, ETR, REN, XCO, XOP, XLU
VEU, SRTY: Big ETF Inflows
Related symbols: VEU, SRTY, NSRGY, NVS
Daily Dividend Report: SNX, FCH, AGI
Related symbols: SNX, FCH, AGI
Daily Dividend Report: CLC, AYI, MORN, ARP, QRE
Related symbols: CLC, AYI, MORN, ARP, QRE
Daily Dividend Report: T, MAS, SCS, PIR, LNN, DOC
Related symbols: T, MAS, SCS, PIR, LNN, DOC
Weekly Market Wrap: September 26, 2014
Related symbols: JNS, BBRY, YHOO, MU, CVS, LMT, CPB, WSM
Weekly Market Wrap: September 19, 2014
Related symbols: BABA, YHOO, RAD, ORCL, MMC, IRM, LPT, STLD
Weekly Market Wrap: September 12, 2014
Related symbols: S, BAC, EBAY, AAPL, YHOO, CL, TYC, PM, IP, AMAT
Week Ahead Market Report: September 29, 2014
Related symbols: TIBX, BAC, ATHL, JNS, WAG, AYI, GPN
Week Ahead Market Report: September 22, 2014
Related symbols: BAC, YHOO, AAPL, BABA, VALE, BBBY, KBH, MU, BBRY
Week Ahead Market Report: September 15, 2014
Related symbols: BAC, YHOO, AAPL, NOK, AVNR, ADBE, LEN, CAG, ORCL
All videos » |
Stock market definitions »
Applied Materials Profit Surges, But Expectations Disappoint
| Market News Video | Copyright © 2008 - 2014, All Rights Reserved
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.