6. Applied Materials (AMAT) provides innovative equipment, services and software for the manufacture of solar photovoltaic products, advanced semiconductors and flat panel displays.
Net income reported for the first quarter of fiscal 2011 was $506 million as against $83 million in the same quarter last year. Net revenue rose to $2.69 billion from $1.89 billion in the first quarter of 2010.
The backlog for orders increased by $292 million to $3.54 billion at the end of the first quarter. Gross margin was 42.3%, marginally higher than 42.2% reported in the fourth quarter of fiscal 2010.Looking ahead, Mike Splinter, CEO of Applied, said, "We see momentum building in our end markets and expect our company's fiscal year revenue to be more than $11 billion, exceeding our previous record by over a billion dollars. We now expect wafer fab equipment spending to be up 10% to 15% from approximately $31 billion in calendar 2010, with crystalline silicon solar equipment spending rising by more than 30% year over year." Cash and cash equivalents increased to $4.1 billion at the end of the quarter. Analysts have 36% buy ratings and expect the stock to deliver 30% over the next year. The stock is trading at 8.8 times its estimated 2011 earnings.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV