BancBoston Robertson Stephens Reiterates Strong Buy Rating, Raises
Estimates On AMAT as Orders Surge
SAN FRANCISCO, May 19 /PRNewswire/ -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens managing director and senior semiconductor
equipment analyst Sue Billat today reiterated her Strong Buy rating and
raised estimates on Applied Materials, Inc. (Nasdaq: AMAT), after the
company reported second quarter fiscal 1999 results well ahead of
expectations. Applied Materials, headquartered in Santa Clara, Calif.,
is the world's leading supplier of semiconductor wafer fab equipment.
"We are reiterating our Strong Buy rating on Applied Materials after the
company reported record order performance during the second quarter
fiscal 1999," said Billat. "We are therefore raising our fiscal 1999
earnings per share estimate from 1.05 to 1.61 and our fiscal 2000
estimate from 2.15 to 2.70.
"Once again, Applied experienced order strength across all geographic
regions and across all IC types," said Billat. "In our view, Applied
Materials continues to leverage its industry leadership through the
broad industry recovery, benefiting from a combination of strong foundry
relationships and market share gains made through the downturn.
"Further, lean manufacturing initiatives implemented during fourth
quarter fiscal 1999 should work increasingly to the company's advantage
as the recovery gains momentum," said Billat. "We note that the company
handled the record 50 percent sequential surge in second quarter
revenues without compromising margin performance to the contrary, gross
margins expanded 310 bp indicating to us the depth of the efficiencies
inherent in the company's new-found manufacturing strength.
"Second quarter earnings per share of 0.36 and orders of 1.39 billion
dramatically beat expectations for 0.27 and approximately 1.3 million,
respectively, with an impressive book-to-bill of 1.24," said Billat.
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
BancBoston Robertson Stephens is a leading international investment
banking firm focused on growth companies. The firm's 55 equity and high
yield research analysts cover more than 600 companies. Additional
information is available upon request.
The information contained herein is not a complete analysis of every
material fact respecting any company, industry or security. Although
opinions and estimates expressed herein reflect the current judgment of
BancBoston Robertson Stephens, the information upon which such opinions
and estimates are based is not necessarily updated on a regular basis
when it is, the date of the change in estimate will be noted. In
addition, opinions and estimates are subject to change without notice.
This Report contains forward-looking statements, which involve risks and
uncertainties. Actual results may differ significantly from the results
described in the forward-looking statements. Factors that might cause
such a difference include, but are not limited to, those discussed in
"Investment Risks." BancBoston Robertson Stephens from time to time
performs corporate finance or other services for some companies
described herein and may occasionally possess material, nonpublic
information regarding such companies. This information is not used in
the preparation of the opinions and estimates herein. While the
information contained in this Report and the opinions contained herein
are based on sources believed to be reliable, BancBoston Robertson
Stephens has not independently verified the facts, assumptions and
estimates contained in this Report. Accordingly, no representation or
warranty, expressed or implied, is made as to, and no reliance should be
placed on, the fairness, accuracy, completeness or correctness of the
information and opinions contained in this Report. BancBoston Robertson
Stephens, its managing directors, its affiliates, and/or its employees
may have an interest in the securities of the issue(s) described and may
make purchases or sales while this report is in circulation. BancBoston
Robertson Stephens International Ltd. is regulated by the Securities and
Futures Authority in the United Kingdom. This publication is not meant
for private customers. The securities discussed herein are not FDIC
insured, are not deposits or other obligations or guarantees of
BankBoston N.A., and are subject to investment risk, including possible
loss of any principal amount invested.
------------------------------------------------------------------------
Contact:
press only, Elizabeth Keys, 202-326-1763, for BancBoston
Robertson Stephens
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Applied Materials (AMAT)Last64.56Time2:40PMChange1.44% Change2.28%
Volume17,367,600Market Cap$24.07 BilCommunity TakeLongs52Shorts11
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