AD,
<<Perhaps a better wording would have been something like: Applied Materials warned that earnings for next quarter will likely come in significantly below current analyst consensus estimates. I'm certain you would agree with that statement!>>
First, it's the CURRENT Q were talking about. Second, the newsies got it right when they said AMAT "expects" to break-even in the current quarter. Read the news on this very subject from yesterday.
AMAT did not issue a warning in any traditional sense. Ask yourself: when, in relation to the beginning/end of a companies' quarter are warnings usually issued?
If analysts issued higher earnings estimates than AMAT could produce for, say, the next 2 years, then, by your rationale, AMAT would have to issue a "warning" for every quarter during that time even if AMAT gave accurate guidance early in each quarter.
No, I don't agree with your statement, and from what I can tell so far today, neither does the market.
Best rgds,
D |
