From SG Cowen:
MTCH (Buy, $8) Kicks Off Fall Earnings Parade
. MTCH is the first company in our universe to report CQ3:00 earnings; FQ1:01 results for the leading provider of third-party equipment/materials sales and support services expected to meet our $117.5MM top-line and $0.26 EPS (ex-goodwill) estimates.
. Recent announcements re the addition of new principals, territory expansion agreements with existing principals, and strategic equity investments provide concrete evidence that mgmt is executing on growth strategy.
AMAT (Buy, $59), BRKS (Buy, $33), CMOS (Buy, $30), NVMI (Buy, $10), PLAB (Buy, $22), PRIA (Buy, $18) - MTCH is a good indicator of the state of the overall industry, and we expect its results to provide some clarity on some of the other companies in our universe. We believe that eqpt co fundamentals remain strong and the cyclical upturn is still intact and poised for a re-acceleration next year, but the more important issue currently is the increased uncertainty surrounding end demand for chips; increasing number of data points suggest end chip demand is weaker than initially believed; see the S-T uncertainty capping upside for eqpt stocks.
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