Chip equipment maker

Applied Materials

(AMAT) - Get Report

was up 1.2% in preopen

Island

trading.

After the close Tuesday, the company posted first-quarter earnings of 66 cents per share excluding items, beating the lowered

First Call/Thomson Financial

estimate of 62 cents and up from 39 cents a year earlier.

Applied Materials warned that second-quarter earnings would be 32 cents to 37 cents per share, well below the Street's estimate of 49 cents.

Prudential

cut its 2001 and 2002 earnings estimates.

Lehman Brothers

sliced its 2001 forecast and cut its 12-month price target to $65 from $90.