Applied Materials delivered the goods when it comes to beating the Street, with the news building upon so much better-than-expected data this past earnings season.
Applied reported a 4-cent a share GAAP loss, but excluding 2 cents in stock based compensation, analysts will be using a 2-cent loss as the apples to apples comparison against the anticipated 8-cents a share loss consensus. That news came on $1.13 billion in revenue, substantially better than the $955 million consensus.
Of course, none of this news is all that good when you compare it to the third quarter of last year, when the company earned 12 cents a share on $1.85 billion, but against analyst expectations, Applied was able to perform admirably. And though it was good news that Applied was able to narrow that red ink, what might be more important is the top line beat since analysts and investors have been anxiously awaiting signs that sales are beginning to recover.
(And credit Credit Suisse which just yesterday raised full year estimates, though its $12.50 price target for Applied Materials still lags the company's share price today of about $13.50.)