While the latest earnings report from Applied Materials provided weak guidance, indications that its revenue emaciation could end in January offered a spot of optimism.
Investors clearly were not happy with the company’s results for the fiscal fourth quarter ended in October, released late Wednesday. Shares of Applied Materials (AMAT) had fallen nearly 7%, or 85 cents, to $11.62 at the noon hour.
But Needham Research Analyst Y. Edwin Mok writes:
“Based on a rebound of silicon revenue/orders and the bottoming of display orders, management sounded optimistic that the January quarter will be the cycle bottom for revenue. While the report was disappointing, we believe longer-term investors should buy the stock on the cyclical recovery both in silicon and display, and AMAT’s strengthened position after completion of the Varian acquisition.”
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