How Did Earnings Affect Applied Materials and Motorola Solutions?



AMAT beats analysts’ estimates

In fiscal 1Q16, Applied Materials’ (AMAT) revenue fell 4% YoY (year-over-year) to $2.3 billion, despite beating analysts’ estimate of $2.2 billion. The company reported strong growth in the Service segment, which was offset by declines in the other three segments: Silicon Systems, Display, and Energy.

In fiscal 1Q16, revenue from Applied Materials’ (AMAT) Silicon Systems segment fell by 5.3% YoY to $1.4 billion. New orders fell by 10.6% YoY to $1.3 billion, with 38% of its orders coming from the foundry. AMAT witnessed strong orders in flash memory, which accounted for 22% of new orders as compared to 18% in fiscal 1Q15.

Shares of Applied Materials rose 10.7% in the trailing-five-day period ending February 22 and 8.6% in the trailing-one-month period.

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Motorola beats earnings estimates

On February 22, 2016, Motorola Solutions (MSI) announced its 4Q15 results and reported EPS (earnings per share) of $1.58, beating Zacks’s consensus estimate of $1.42 by $0.16. In 4Q14, MSI’s EPS were $1.25. While revenue fell 7.7% YoY in 4Q15 to $1.68 billion, it was marginally lower than analysts’ estimate of $1.69 billion.

Shares of Motorola rose 11.6% in the trailing-five-day period ending February 22 and 14.1% in the trailing-one-month period. MSI is trading close to its 52-week high of $72.97.

The top losers in the technology sector include firms like Monster Worldwide (MWW), Yandex, Micron Tech (MU), and Korea’s (EWY) Samsung Electronics (SSNLF), which fell 5.7%, 4.9%, 3%, and 2.5%, respectively in the trailing-five-day period.


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