November 16, 2012 at 08:21 AM EST
Applied Materials Sees Q4 Loss; Sales Decline (AMAT)

Manufacturing equipment provider, Applied Materials, Inc.(AMAT) reported a net loss for its fourth quarter due to acquisition expenses and decline in sales.

The Santa Clara, CA based company reported a fourth quarter net loss of -$515 million, or 42 cents a share, compared with earnings of $456 million, or 34 cents a share last year. This is the company’s first reported loss since July 2009. Excluding acquisition expenses, the company expects earnings of 9 cents, analysts are expecting EPS of 6 cents.

Revenue was reported at $1.65 billion for the quarter, down from last years revenue of $2.18 billion. On average, analysts expected revenue of $1.58 billion.

The company reported that they are expecting the current quarters sales to decline from the previous quarter. Additionally, AMAT, being the largest chipmaker in the world, expects the demand for chips to decline. The company expects the current quarters revenue to be in the range of $1.4 billion to $1.65 billion. Analysts on average are expecting sales of $1.77 billion.

The company reported in October that they are planning to cut 900 to 1,300, or 6% to 9% of its staff.

Applied Materials shares were mostly flat during premarket trading Friday.

The Bottom Line
Shares of Applied Materials (AMAT) have a 3.50% dividend yield, based on last night’s closing stock price of $10.30. The stock has technical support in the $9 price area. If the stock can firm up, we see overhead resistance around the $11.50-$12.00 price levels.

Applied Materials, Inc.(AMAT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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