Applied Materials‘ (AMAT) fiscal second-quarter came in narrowly ahead of estimates on both EPS and revenue. Sales rose 24% from last quarter to $2.3 billion. Analysts expected $2.24 billion. Adjusted earnings per share was 22 cents, a penny ahead of consensus.
For the third quarter, the company forecast an EPS range [...]

Article courtesy of BARRONS.com: Tech Trader Daily

Brigantine Advisors analyst Darcie Liu has launched coverage on Brooks Automation (BRKS) and Applied Materials (AMAT). Liu expects 2010 semiconductor industry capital spending to be up more than 75% in 2010.

• Brooks: Liu set a Buy rating on the stock, with a $12 price target. “As a leading OEM supplier, Brooks Automation is well positioned to benefit from 2010’s significant semiconductor capital spending plans,” she writes in a research note.
• Applied Materials: Liu begins coverage with a Hold rating. “Applied Materials is known as the semiconductor capital equipment king, and it still is…but its crown has been dinged and tarnished,” she writes. “With semicap market share losses to missing the ball in other segments, AMAT has lost its luster in the past couple of years.” The analyst adds that the company’s entry into the solar market had been “particularly lackluster and disappointing.” She concludes: “As Applied Materials rebuilds, restructures and refocuses its business model, we are on the sidelines.”

In today’s trading:

• BRKS is up 22 cents, or 2.5%, to $9.15.
• AMAT is up 12 cents, or 0.9%, to $13.60.

Article courtesy of BARRONS.com: Tech Trader Daily

Applied Materials (AMAT) this afternoon said it now sees sales for its fiscal year ending October up at least 60% from FY 2009, an upward revision from its previous forecast for growth of at least 50%.

Here’s the new forecast by market segment:

• Silicon: Now seen up at least 120%, versus 100% previously.
• Applied Global Services: Now seen up at least 35%, versus 30% previously.
• Display: Now see up at least 50%, versus 30% previously.
• Energy and Environmental: Now see up at least 5%, versus flat previously.

CEO Mike Splinter said in a statement that the company sees “the early stages of a multi-year growth cycle in many of our served markets.”

AMAT is now up 21 cents, or 1.6%, to $13.52.

Update: Bloomberg reports that the company sees 2010 EPS of 68-78 cents, above the Street at 70 cents.

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Applied Materials (AMAT) CEO Michael Splinter sees consolidation ahead for the semiconductor equipment sector – and the company plans to play a role.

Splinter told the Wall Street Journal that the company has a balance sheet that can support additional acquisitions, including deals larger than its $364 million purchase of Semitool in 2009.

Meanwhile, he said chip makers remain cautious about equipment spending, and still aren’t prepared to meet growing demand as the global economy recovers.

AMAT is down a penny at $13.30.

Article courtesy of BARRONS.com: Tech Trader Daily

Oppenheimer analyst Gary Hsueh this morning downgraded his ratings on both KLA-Tencor (KLAC) and Lam Reserarch (LRCX), citing signs of weakness observed on a recent trip through Asia.

On KLAC, he goes to Underperform from Perform; on LRCX he goes to Perform from Outperform.

“Right off the bat on our quarterly trip to Asia, things weren’t smelling right for semi cap equipment,” he writes in a research note. “decent sell-through in China during the Lunar New Year week in February, and better-than-expected February retail sales in the U.S. appear to justify slightly the inventory creep for semis in Q2, and DRAM remains tight. Yet, for semi cap equipment, there is no getting around the issue of customer concentration.” And he says checks find front-end semi equipment companies are facing a 15-20% Q2 drop in orders as Taiwan Semiconductor (TSM) cuts purchasing to zero in Q2 and Q3. So while he still likes the group long-term, he adds that “we have to face reality.”

For LRCX, he also cuts his June 2011 EPS forecast to $2.82, from $4.25, and chops his price target to $35, from $55.

For KLAC, his June 0211 estimate drops to $2.02, from $2.80. His target is now $25, down from $37.

He also trims estimates for Applied Materials (AMAT): for the October 2010 year, he goes to 83 cents, from $1, while for FY 2011 he now sees $1.29, down from $1.50. His target price drops to $17, from $20.

In today’s trading:

• LRCX is down $1.11, or 3.3%, to $33.15.
• KLAC is down $1.24, or 4.2%, to $28.21.
• AMAT Is down 16 cents, or 1.3%, to $12.20.

Article courtesy of BARRONS.com: Tech Trader Daily

Someone sure doesn’t like Duke Energy (DUK) CEO James Rogers.

In an otherwise routine SEC filing, Applied Materials (AMAT) late Friday disclosed the results of its latest board election. There weren’t a lot of surprises; CEO Michael Splinter received more than 95% “Yes” votes, and all of the other board members – aside from Rogers – were elected with even wider majorities.

But Rogers received “No” votes from from holders with more than 319 million shares – almost a third of the shares for which votes were cast. Or to look at it another way, holders with more than $3.9 billion in AMAT shares voted to boot this guy from the board.

Just who doesn’t like this guy – and why?

Article courtesy of BARRONS.com: Tech Trader Daily