Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 261.32

+0.9%

3:59 PM EST

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To: Proud_Infidel who wrote (33291)	11/19/1999 11:48:00 PM
From: A. Edwards	of 70976

Prudential Securities raised EPS and price target: November 18, 1999 John W. Pitzer (650) 320-1633 INVESTMENT HIGHLIGHTS: * AMAT 4Q99 better-than-expected revenue and EPS. AMAT reports 4Q99 EPS of $0.77 ($0.72 from core and $0.05 non-repeatable from AKT), significantly higher than our EPS estimate of $0.64 and street consensus EPS estimate of $0.65. Better-than-expected 4Q99 was driven by higher revenue and margins. * Order rates at record levels and above street expectations. New orders for 4Q99 were $1.65 billion, slightly above street expectations of $1.6 billion and above our range of $1.55 to $1.60 billion. Book to bill in the quarter was 1.05 with ending backlog of $1.66 billion or 3.0 months. * Bookings outlook for 1Q00 improving significantly. AMAT gave guidance for sequential growth in revenue, EPS and bookings (10-15% sequential) for 1Q00. We believe that new bookings in 1Q00 should be near $1.9 billion. We believe the company has visibility to stronger bookings in 2Q00 as well. * We are raising estimates to reflect better revenue and margins. We are raising our revenue and EPS estimates for FY00 to $7.0 billion and $3.28 from $6.3 billion and $2.85. For FY01, we are raising estimates to $8.2 billion and $4.20 from $7.7 billion and $3.95. * Strong revenue, bookings and margin expansion force us to revisit our estimates and price target. 4Q99 helped to re-enforce our belief that Applied Materials is gaining share and overall demand is gaining steam. We are revising our price target to $135 per share based on a 30x multiple of our CY01 estimate of $4.45. As 1Q00 unfolds we will reevaluate our model and reassess the growth estimates for the remainder of FY00 and FY01.

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