Applied Materials beat fiscal second quarter earnings. The semi-conductor equipment maker’s revenue hit a record high in the quarter. What's more, the guidance for the fiscal third quarter is also higher than analysts' forecast.
The company’s net income came in at $1.43 a share, increasing from 82 cents a share in the year-ago period. Adjusted earnings, which excluded a $154 million termination fee that Applied Materials paid to a former acquisition target and other items, were $1.63 a share, compared with 89 cents a share in the year-ago quarter. Analysts polled by FactSet had expected $1.51 a share .
Revenue rose to $5.58 billion in the quarter from $3.96 billion in the year-ago period. Analysts polled by FactSet had expected $5.41 billion.
For the third quarter, Applied Materials project adjusted earnings of $1.70 to $1.82 a share on sales of $5.72 billion to $6.12 billion. Analysts surveyed by FactSet had been expecting adjusted earnings of $1.56 a share on revenue of $5.53 billion.
AMAT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 41 cases where AMAT's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where AMAT's RSI Indicator exited the oversold zone, of 26 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where AMAT's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where AMAT advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on November 15, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on AMAT as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for AMAT turned negative on November 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
AMAT moved below its 50-day moving average on November 11, 2024 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMAT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AMAT entered a downward trend on November 19, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.950) is normal, around the industry mean (8.631). P/E Ratio (24.546) is within average values for comparable stocks, (58.557). Projected Growth (PEG Ratio) (2.493) is also within normal values, averaging (3.013). Dividend Yield (0.006) settles around the average of (0.021) among similar stocks. P/S Ratio (6.631) is also within normal values, averaging (49.147).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. AMAT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of equipment and software for the semiconductor industries
Industry Semiconductors