What to Expect When Applied Materials (AMAT) Reports Earnings Results

NEW YORK (TheStreet) -- Applied Materials (AMAT) is scheduled to release its 2015 second quarter earnings results after the market close this afternoon. Analysts are expecting the provider of manufacturing equipment, services and software to the global semiconductor and related industries to post earnings per share that are flat with the same quarter in the prior year, and a slight rise in revenue.

Shares of Applied Materials are up by 0.55% to $20.04 in mid-morning trading on Thursday.

Analysts have forecast that the company will report earnings of 28 cents per share on revenue of $2.40 billion for the quarter ended April 2015.

In the same period last year, Applied Materials said its non-GAAP adjusted earnings came in at 28 cents per share on revenue of $2.35 billion. Both figures from the 2014 second quarter had improved from the same period in the previous year.

Separately, TheStreet Ratings team rates APPLIED MATERIALS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate APPLIED MATERIALS INC (AMAT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • AMAT's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • AMAT's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, AMAT has a quick ratio of 1.85, which demonstrates the ability of the company to cover short-term liquidity needs.
  • APPLIED MATERIALS INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLIED MATERIALS INC increased its bottom line by earning $0.87 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus $0.87).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 37.5% when compared to the same quarter one year prior, rising from $253.00 million to $348.00 million.
  • You can view the full analysis from the report here: AMAT Ratings Report

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