Applied Materials reported fiscal third quarter results that beat analysts' forecasts.
Applied Materials Reports Profit in 3Q
Applied Materials Inc., the world's largest supplier of machines that make computer chips, Tuesday said surging sales in its latest quarter surpassed its own and Wall Street estimates.
The Santa Clara-based company earned $440.1 million, or 26 cents a share, on revenue of $2.24 billion in the fiscal third quarter ended Aug. 1.
In the same quarter last year, the company reported a loss of $36.8 million, or 2 cents a share, on revenue of $1.09 billion. Those results included restructuring and other charges. Excluding charges, the company earned $78.5 million, or 5 cents a share.
For the latest quarter, analysts were expecting earnings of 25 cents a share on sales of $2.14 billion, according to Thomson First Call.
The company reported that orders remained strong.
"I'm confident in looking forward to continued growth in the second half of 2004, and expect further growth in 2005 given the expected continued global economic expansion," said Chief Executive Mike Splinter.
However, analysts were not so optimistic.
CBS MarketWatch reported that Brett Hodess of Merrill Lynch has "lowered his earnings estimates because Applied Materials' product mix was shifting toward more lower-margin services and spares sales".
Jeff Hwang wrote at The Motley Fool that the company's "momentum has slowed, and Applied Materials' fourth-quarter guidance offers little to suggest otherwise".