One of the frustrating parts about following semiconductor and semiconductor equipment stocks is that no two cycles are exactly alike. Right now, Applied Materials (Nasdaq:AMAT) is in a place where the industry is still trying to find the bottom in orders, and companies like ASML (Nasdaq:ASML) have started to suggest that orders will bottom out to maintenance levels late this year or early next year. Applied Materials looks cheap, but it did a quarter ago and the quarter before that, and investors may want to wait for signs of stabilization in orders before taking the plunge.
A Solid Third Quarter ... Sort Of
Applied Materials has been in a weird place for a little while now, lowering order guidance and yet still managing to do a little better than it leads investors to expect. So, too, again this time. Revenue fell 3% on a sequential basis (and rose 11% year over year), enough to beat the average estimate by $100 million and the high end of the range by $50 million. Business was relatively balanced, with the large Silicon Systems category down about 4% sequentially.
Read more: http://stocks.investopedia.com/stock-analysis/2011/Waiting-For-Applied-Materials-To-Wash-Out-AMAT-ASML-HPQ-BBY-TSM-NVLS-LRCX0825.aspx#ixzz1W5oFMnIY
Read more through the link below:
http://stocks.investopedia.
No comments:
Post a Comment