Applied Materials (NASDAQ:AMAT), a maker of semiconductor manufacturing equipment, released full-year 2006 earnings on Nov. 15 for the period ended Oct. 29.
- As long as back-end suppliers like Applied Materials keep growing sales at a better-than-30% clip, you have to assume that the semiconductor industry as a whole is growing at a healthy pace, too. The company's customers wouldn't be buying more fabrication equipment unless they saw a future need for increased production capacity.
- Free cash flow is another fast-growing item here, though the company still had to dip into its cash accounts to fund acquisitions and share buybacks.
- Other than net margins, which suffered from a higher-than-expected tax rate for the year, those margins are moving in the right direction on a year-over-year and sequential basis.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
FY 2006 |
FY 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$9,210 |
$9,167.0 |
$6,991.8 |
31.1% |
|
Net Profit |
-- |
$1,516.7 |
$1,209.9 |
25.4% |
|
EPS |
$1.06 |
$0.97 |
$0.73 |
32.9% |
|
Diluted Shares | -- |
1,565.1 |
1,657.5 |
(5.6%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
46.82% |
44.14% |
2.68 |
|
Operating Margin |
22.04% |
20.71% |
1.33 |
|
Net Margin |
16.54% |
17.30% |
(0.76) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,897.3 |
$3,333.3 |
(43.1%) |
|
Accounts Rec. |
$2,026.2 |
$1,615.5 |
25.4% |
|
Inventory |
$1,406.8 |
$1,034.1 |
36% |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$2,023.7 |
$1,618.0 |
25.1% |
|
Long-Term Debt |
$204.7 |
$407.4 |
(49.8%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
FY 2006 |
FY 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1,935.6 |
$1,247.1 |
55.2% |
|
Capital Expenditures |
$179.1 |
$199.7 |
(10.3%) |
|
Free Cash Flow |
$1,756.5 |
$1,047.5 |
67.7% |
Find out why Fools always follow the money.
Cash Handling Checkup
|
FY 2006 |
FY 2005 |
Change | |
|---|---|---|---|
|
Days in Inventory |
91.4 |
101.6 |
(10.2) |
|
Days in Receivables |
72.5 |
85.8 |
(13.3) |
|
Days Payables Outstanding |
136.3 |
164.1 |
(27.8) |
|
Cash Conversion Cycle |
27.5 |
23.2 |
4.4 |
|
New Orders |
$9,890 |
$6,390 |
55% |
Read up on cash conversion metrics.
Competitors:
- Brooks Automation (NASDAQ:BRKS)
- LAM Research (NASDAQ:LRCX)
- Linear Technology (NASDAQ:LLTC)
Major Customers:
- Intel (NASDAQ:INTC)
- STMicroelectronics (NYSE:STM)
- Semiconductor Manufacturing International (NYSE:SMI)
Small caps. Large caps. Fool CAPS ! The Motley Fool's new investor-intelligence community rates thousands of stocks to help you improve your own stock selections. Join today for a fun new way to research stocks!
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here . Intel is a Motley Fool Inside Value recommendation.
