U.S. Movers: Applied Materials, Agilent, Cisco, Limited Brands, NetApp

Mukesh Buch
16 Aug, 2012
New York City

Applied Materials third quarter net plunge 54.2% and estimated current quarter sales to fall below estimate. Agilent net fell 26%. Cisco fourth quarter net soared 56% to $1.92 billion. Limited Brands second quarter net dropped 37.9% and NetApp net tumbled 54.3%.

[R]10:05 AM New York – Applied Materials third quarter net plunge 54.2% and estimated current quarter sales to fall below estimate. Agilent net fell 26%. Cisco fourth quarter net soared 56% to $1.92 billion. Limited Brands second quarter net dropped 37.9% and NetApp net tumbled 54.3%.[/R]

Applied Materials, Inc. ((AMAT)) rose 2 cents to $11.82 after the chip making equipment manufacturer reported revenue in the third quarter ending on July 29 slipped 16.1% to $2.34 billion compared to $2.79 billion in the same period of last year. Net income in the quarter plunged 54.2% to $218 million or 17 cents per diluted share compared to $476 million or 36 cents per share a year ago earlier.

For the fourth quarter, Applied expects net sales to decline 25% to 40% sequentially on weak segment results. Silicon Systems Group orders dropped 41%, Applied Global Services orders slumped 18% and display orders declined 20% on weaker demand in semiconductor, display and solar.

Agilent Technologies, Inc. ((A)) dropped 6.8% or $2.78 to $37.70 after the electronic measurements maker reported revenues in the third quarter of ending in July rose 2% to $1.72 billion compared to $1.69 billion in the same period of last year. Net income in the quarter declined 26% to $243 million or 69 cents per diluted share compared to $330 million or 92 cents per share a year ago period.

Agilent expects fourth quarter revenues in the range of $1.76 billion to $1.78 billion and non-GAAP earnings per share in the range of 80 cents to 82 cents.

Bill Sullivan, President and CEO said that the results of third quarter did not meet revenue and earnings per share guidance and “we clearly entered an environment of much slower growth.”

Cisco Systems, Inc. ((CSCO)) jumped 7.9% or $1.38 to $18.73 after the network solution provider reported net sales in the fourth quarter of ending on July 28 grew 4.4% to $11.7 billion compared to $11.2 billion in the same period of last year. Net income in the quarter soared 56% to $1.92 billion or 36 cents per diluted share compared to $1.23 billion or 22 cents per share a year ago.

During quarter Cisco repurchased 108 million repurchase the common stock at an average price of $16.62 per share for purchase price of $1.8 billion.

Limited Brands, Inc. ((LTD)) slipped 1.2% or 60 cents to $48.39 after the specialty retailer reported sales in the second quarter ending on July 28 slid 2.4% to $2.4 billion compared to $2.46 billion in the same period of last year. For the quarter comparable same store sales increased 8%

Net income in the quarter dropped 37.9% to $143.6 million or 49 cents per diluted share compared to $231.2 million or 73 cents per share a year ago.

The retailer expects third quarter adjusted earnings per share to be 15 cents to 20 cents from 25 cents per share last year and for 2012 expected earnings per share of $2.73 to $2.88 versus previous guidance of $2.63 to $2.83.

NetApp, Inc. ((NTAP)) rose 7 cents to $31.82 after the data storage device provider reported net revenue in the first quarter of ending on July 27 rose 1.4% to $1.44 billion compared to $1.46 billion in the same period of last year. Net income in the quarter tumbled 54.3% to $63.8 million or 17 cents per diluted share compared to $139.5 million or 34 cents per share a year ago.

NetApp estimates revenue for the second quarter to be in the range of $1.5 billion to $1.6 billion and earnings per share to be about 23 cents to 28 cents per share.

PetSmart, Inc. ((PETM)) advanced 4.3% or $2.92 to $70.36 after the pet service provider reported total sales in the second quarter ending on July 29 increased 9% to $1.62 billion compared to $1.49 billion in the same period of last year. Comparable store sales climbed 7%.

Net income in the quarter rose 4.8% to $78.5 million or 71 cents per diluted share compared to $61.2 million or 54 cents per share a year ago.

The service provider anticipates comparable store sales growth in the range of mid-single digit and total sales between 10% and 11% and lifted earnings per share range to $3.30 to $3.40 from previous guidance of $3.19 to $3.31.