Company Update (NASDAQ:AMAT): Why Did Applied Materials’ Profits Fall in Fiscal 2Q16?

[Market Realist] – Applied Materials’ (AMAT) non-GAAP (generally accepted accounting principle) gross margin fell from 43.2% in fiscal 2Q15 to 42.7% in fiscal 2Q16. Read more on this. Applied Materials, Inc. (AMAT) , with a current market cap of $26.79B, began trading this morning at $23.67. Today, shares have traded between $23.60 and $23.87 per share and has traded between $14.25 and $23.88 over the past 12 months. AMAT shares are currently priced at 15.57x this year’s forecasted earnings, which makes them relatively inexpensive compared to the industry’s 21.87x forward p/e ratio. The company pays shareholders $0.40 per share in dividend income per year, for a current yield of 1.75%. According to a consensus of 20 analysts, the earnings estimate of $0.48 per share would be $0.15 better than the year-ago quarter and a $0.13 sequential increase. What we find to be interesting is that the full-year EPS estimate of $1.52 is a $0.33 better when compared to the previous year’s annual results. The quarterly earnings estimate is predicated on a consensus revenue forecast of $2.82 Billion. If reported, that would be a 13.25% increase over the year-ago quarter. In terms of ratings, Citigroup upgraded AMAT from Neutral to Buy (May 25, 2016). Previously, Susquehanna downgraded AMAT from Neutral to Negative. With the above information in mind, readers should note that the average price target is $25.84, which is 9.17% above where the stock opened this morning. See more in (NASDAQ:AMAT) Similar Articles: Market Update: Applied Materials Inc (NASDAQ:AMAT) – Applied Materials Surge on Earnings Beat, Guidance (AMAT) Company Update: Applied Materials Inc (NASDAQ:AMAT) – Applied Materials (AMAT) Stock Soars on Earnings Beat, Jim Cramer’s View Stock Update: Applied Materials Inc (NASDAQ:AMAT) – Applied Materials (AMAT) Stock Lower Ahead of Today’s Earnings Report