NEW YORK (TheStreet) -- Applied Materials (AMAT) shares are up 2.47% to $20.35 in early market trading on Friday following the release of the technology manufacturing equipment and service provider's second quarter earnings results after the closing bell yesterday.
The Santa Clara, CA-based company reported second quarter adjusted earnings of 29 cents per share, 4% better than the EPS it reported in the year ago period, and 1 cent better than the 28 cents per share analysts were expecting this quarter.
Revenue for the period also increased by 4% to $2.44 billion, topping analysts' $2.36 billion consensus estimates.
For the current quarter the company forecast revenue growth between 2% and 6% for a top line revenue estimate of $2.59 billion, ahead of analysts' $2.52 billion expectations.
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."