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.
Monday Sector Laggards: Metals & Mining, Electric Utilities
Related symbols: MCP, ACI, EBR, CIG
Monday Sector Leaders: Semiconductors, Auto Dealerships
Related symbols: NXPI, FSL, PRTS, PBY
Friday Sector Laggards: Consumer Services, Biotechnology Stocks
Related symbols: WTW, ASCMA, ATRA, IBIO
Monday's ETF with Unusual Volume: IDU
Related symbols: IDU, AES, SO, UIL, DYN
Monday's ETF Movers: SOXX, ILF
Related symbols: NXPI, FSL, EC, CIG, ILF, SOXX
EMLC, FUTS: Big ETF Outflows
Related symbols: EMLC, FUTS
Daily Dividend Report: MJN, ROST, GPS, WYN, DLR, ECL, PPL
Related symbols: MJN, ROST, GPS, WYN, DLR, ECL, PPL
Daily Dividend Report: TD, CM, CB, PLD, KSS, ESS, TMO, ACE, CI
Related symbols: TD, CM, CB, PLD, KSS, ESS, TMO, ACE, CI
Daily Dividend Report: HD, CMCSA, BMO, CTL, UFS, MLI
Related symbols: HD, CMCSA, BMO, CTL, UFS, MLI
Weekly Market Wrap: February 27, 2015
Related symbols: BAC, AAPL, JCP, GE, CMCSA
Weekly Market Wrap: February 13, 2015
Related symbols: ZNGA.BAC, GRPN, AAPL, HON, FDX, CSCO, UPS, TWX, UNH
Weekly Market Wrap: February 6, 2015
Related symbols: BAC, TWTR, FTR, SIRI, GE, PEP
Week Ahead Market Report: March 2, 2015
Related symbols: AAPL, BAC, ARUN, ARCP
Week Ahead Market Report: February 23, 2015
Related symbols: AAPL, BAC, HLSS, NBG, SLXP
Week Ahead Market Report: February 9, 2015
Related symbols: BAC, AAPL, TWTR, NBG, DF, TAP, CG, CSCO, AIG, SJM
All videos » |
Stock market definitions »
Applied Materials Profit Surges, But Expectations Disappoint
| Market News Video | Copyright © 2008 - 2015, 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.