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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (12249)	12/1/2004 8:29:43 AM
From: matt dillabough	Read Replies (2) \| Respond to of 25522

NVLS Novellus: Color on MidQtr update (26.94 ) Analysts somewhat mixed following Novellus' mid-quarter update... JP Morgan noting the co revised its 4Q order guidance to $325-$330 mln, down 22%-23%, the better end of the previous guidance of down 22%-24% ($320-$330 mln). Firm expected the revised guidance to be -15% to -20%, which is what industry checks suggest is the current outlook. Therefore, an upside surprise seems likely when 4Q results are reported. Notes that co's mid-quarter update was modestly better-than-expected, the first time for any equipment company following worse-than-expected results/guidance in the Oct earnings season and Applied's weak F1Q05 (Jan) guidance... Goldman comments that while the order outlook was below consensus, Q4 gross margins look impressive after several qtrs of disappointing margins. Based on strong cost controls, the company is keeping margins flat q-q despite a significant drop in sales. FY04 EPS goes to $1.05 from $0.98 on higher margins. FY05 EPS unchanged at $0.80. Novellus is hopeful that business is bottoming, but the firm believes this view is dependent on continued DRAM orders that are unlikely to sustain given what they expect will be a significant decline in DRAM pricing over the next several qtrs. Expects this weakening in DRAM to drive the next leg down in orders and the stocks. Rates In-line.