Boston, MA 05/16/2014 (wallstreetpr) – Innovative equipment and services provider, Advanced Materials, Inc. (NASDAQ:AMAT) announced a profit for the second quarter compared to a loss suffered in the last year quarter as revenue increased 19.3%. However, on an adjusted basis, profit surged 75%.
2Q Results
The company reported a net profit of $262 million or 21 cents a share for the second quarter compared to a loss of $129 million or a loss of 11 cents a share in the year earlier quarter. On an adjusted basis, after excluding special items, net earnings climbed 75% to $348 million or 28 cents a share from $199 million or 16 cents a share in the year-ago quarter. On average, analysts estimated the company to earn 28 cents a share.
Advanced Materials’ revenue grew 19.3% to $2.35 billion from $1.97 billion in the previous year quarter, which is in line with the Wall Street predictions of $2.349 billion. Its Silicon Systems Group recorded a 6% gain in orders to $1.66 billion, while net sales rose 7% to $1.58 billion. Display orders totaled $340 million compared to $79 million as a result of TV production capacity and net sales fell 8% to $147 million. The other division, Applied Global Services’ net sales grew 5% to $534 million, whereas orders dipped 10%.
Advanced Materials, Inc. (NASDAQ:AMAT) disclosed that its gross margin benefited by 50 basis points due to non-recurring items. Its backlog advanced 12% to $2.74 billion sequentially, which includes favorable adjustments of $23 million with regard to EES re-bookings.
Outlook
Moving ahead, Advanced Materials expect adjusted earnings per share to be 25 – 29 cents for the third quarter. Street analysts are looking for earnings of 27 cents a share for the same period. The company also sees net sales grow about 13% – 19% over the last year third quarter. Analysts predict Advanced Materials, Inc. (NASDAQ:AMAT) to generate revenue growth of 17.6% at $2.32 billion. Sequentially, it expects sales to be flat to minus 5% over the second quarter.
