FROM RAGING BULL THREAD
Minbari
I don't know where you got the info (re: prudential cautionary remarks as well as Lehman), but this is what I saw on briefing.com:
10:53 ET ******
Applied Materials (AMAT) 72 13/16 +2 1/4: There is one down, and now there are two to go.
Last night, Cisco (CSCO +3 1/4) provided tech investors with a needed sentiment boost, and
over the next two days, Applied Materials and Dell Computer (DELL +1/16) will have the
opportunity to do the same. Today, the leading chip equipment maker, Applied Materials, steps
to the plate as it is scheduled to release its fiscal Q3 earnings after the close. To say there is a
good deal of anticipation ahead of AMAT's report would be an understatement as chip
equipment investors are in desparate need of a sign that the chip equipment cycle still has
plenty of staying power. In large part, that desparation stems from last week's warning from
Kulicke & Soffa (KLIC +7/16) of customer order deferrals and a recent report that the chip
equipment book-to-bill ratio fell to 1.26 in June from 1.28 in May. Suffice it to say, neither played
out well for the semiconductor-related stocks which got pummeled last week. AMAT, however,
has the ability to stop the bleeding. Judging by the manner in which AMAT and many of its
peers are trading today, and in the wake of CSCO's report, the market seems to think it will.
The First Call consensus EPS estimate for Q3 is $0.68 with a high estimate of $0.74 and a low
estimate of $0.65. In the yr-ago period, AMAT earned $0.31 per share. Revenues are projected
to be about $2.70 bln which is up considerably from $1.48 bln last year. Consistent with
AMAT's guidance for 10% sequential order growth, most analysts have forecasted bookings to
be in the neighborhood of $3.20 bln with expectations that the growth will be driven by strong
demand in AMAT's U.S., Korean, and Japanese markets. Of course, like other tech leaders,
AMAT's guidance in its conference call will be of the utmost importance. Investors will be
listening for AMAT to re-affirm its own growth prospects and to provide some insight as to the
sustainability of the chip equipment cycle with positive statements on strengthening equipment
orders for new technology processes such as 300mm and copper.-- Patrick J. O'Hare,
Briefing.com
Firm EPS Revs. Bookings
Wiliam Blair & Co. $0.68 $2.73B $3B+
Salomon Smith Barney $0.67 $2.68B $3.23B-$3.35B
Merrill Lynch $0.68 $2.70B $3.2B-$3.3B
Donaldson, Lufkin & Jenrette $0.66 $2.65B $3.20B-$3.25B
SG Cowen $0.69 $2.70B NA |
