On Nov. 15, leading semiconductor manufacturing equipment supplier Applied Materials
- The company is growing orders faster than sales, an indication of more growth to come. Management has also become quite adept at passing higher sales on down the income statement, judging from the profit growth and ballooning margins.
- A generous share buyback program doesn't hurt any, either.
- But that buyback cost money, and it's one major reason behind the lower cash balance.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$2,560 |
$2,518.3 |
$1,718.1 |
46.6% |
|
Net Profit |
-- |
$449.0 |
$246.7 |
82% |
|
EPS |
$0.31 |
$0.30 |
$0.15 |
100% |
|
Diluted Shares |
-- |
1,482.1 |
1,628.7 |
(9%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
47.10% |
44.24% |
2.86 |
|
Operating Margin |
25.21% |
20.46% |
4.75 |
|
Net Margin |
17.83% |
14.36% |
3.47 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 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 |
Q4 2006 |
Q4 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
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$659 |
$197.8 |
233.2% |
|
Capital Expenditures |
$59 |
$62.9 |
(6.2%) |
|
Free Cash Flow |
$600 |
$134.9 |
344.8% |
2006 Figures extracted from the earnings conference call.
Find out why Fools always follow the money.
Cash Handling Checkup
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
92.8 |
99.0 |
(6.2) |
|
Days in Receivables |
77.2 |
82.3 |
(5.1) |
|
Days Payables Outstanding |
142.3 |
156.0 |
(13.7) |
|
Cash Conversion Cycle |
27.7 |
25.2 |
2.5 |
|
New Orders |
$2,690.00 |
$1,690.00 |
59% |
Read up on cash conversion metrics.
Competitors:
-
Agilent Technologies
(NYSE:A) -
KLA-Tencor
(NASDAQ:KLAC) -
Novellus Systems
(NASDAQ:NVLS)
Major Customers:
-
Intel
(NASDAQ:INTC) -
STMicroelectronics
(NYSE:STM) -
Semiconductor Manufacturing International
(NYSE:SMI)
Related Foolishness:
- Applauding Applied Materials' Year: Fool by Numbers
- Foolish Forecast: Applied Materials' Buying Binge
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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, Fool contributor Anders Bylund had no position in any company mentioned. Intel is a Motley Fool Inside Value recommendation. Fool rules arehere.
