RealTime IT News

AMAT Beats, Raises Estimates

Applied Materials beat estimates and raised guidance after the close on Wednesday.

Earnings of 6 cents a share beat estimates by a penny, and revenues of $1.22 billion bested $1.13 billion forecasts.

The company predicted a 20% sequential increase in orders and a 5-7% jump in revenues for the January quarter, both above expectations.

AMAT's results were down significantly on a year-over-year basis, but investors cheered the chip equipment giant's third straight sequential quarterly gain in revenues, sending the stock 2% higher after hours.

Also after the close, eSpeed warned.

Stocks surged during the day ahead of AMAT's results and Dell's earnings Thursday night. Also helping set the tone was news that Ford's debt status stayed above junk.

The Nasdaq surged 42 to 1973, the S&P 500 rose 11 to 1058, and the Dow gained 111 to 9848. Volume rose to 1.32 billion shares on the NYSE, and 1.86 billion on the Nasdaq. Advancers led 25-7 on the NYSE, and 24-8 on the Nasdaq. Upside volume was 84% on the NYSE, and 89% on the Nasdaq. New highs-new lows were 246-10 on the NYSE, and 250-16 on the Nasdaq.

Latitude soared 27% on news that it will be acquired by Cisco . WebEx fell 8% on news that it will be getting more competition.

Akamai gained 5.5% on a deal with China Telecom.

Computer Sciences and iPayment surged after beating estimates, while Sycamore lost 5% after missing revenue estimates.

Brocade rose 12% on a Goldman Sachs upgrade.

Nokia climbed 4% as investors focused on an upgrade instead of security problems.

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