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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (51237)	2/24/2011 5:08:12 PM
From: Ian@SI	2 Recommendations Read Replies (2) \| Respond to of 95626

AMAT's earnings have me confused. I was expecting to see evidence of the cycle rolling over. It clearly hasn't. Yet. +++++++++++++++ Applied Materials 1Q Profit Soars, Boosts Revenue Forecast Applied Materials Inc.'s (AMAT) fiscal first-quarter earnings soared, topping the company's own estimates, as revenue increased sharply and margins improved. Chairman and Chief Executive Mike Splinter said the company expects to post full-year revenue of more than $11 billion, exceeding its previous forecast, whose high end was $9.84 billion. "Applied's solid first quarter was driven by continued strength in semiconductor systems and record profitability in solar," Splinter said. The semiconductor-equipment maker--which makes tools used to make chips, television screens and some solar panels--has seen results improve lately, helped by a sharp increase in sales and better margins. For the quarter ended Jan. 30, Applied Materials reported a profit of $506 million, or 38 cents a share, up from $83 million, or 6 cents, a year earlier. Excluding items such as restructuring and asset-impairment charges, earnings rose to 36 cents from 13 cents. Revenue jumped 45% to $2.69 billion. The company had forecast earnings of 30 cents to 34 cents a share on $2.45 billion to $2.66 billion in revenue. Gross margin rose to 42.3% from 38.5%. Total new orders rose 51% to $2.97 billion. Backlog at the end of the quarter was $3.54 billion, up $292 million from the prior quarter. Looking ahead, the company said it expects second-quarter sales to be flat to up 5% from the prior quarter, as well as earnings ranging from 34 cents to 38 cents. Analysts most recently expected 31 cents of earnings and a 6.3% decline in revenue. Shares rose 1.3% to $16.03 after hours. As of the close, the stock had risen 29% over the past 12 months.