S&P 500 Earnings Preview – Applied Materials Headlines Thursday’s Earnings Results

 

Applied Materials

Applied Materials (AMAT) is scheduled to report financial results on May 14, 2020. Expectations are for the company to earn $0.95 per share on $4.15 billion in revenues. This compares to $0.93 per share earning by AMAT for its last quarterly report. The forecast for earnings per share has declined by $0.01 per share over the past 30-days from $0.96 per share and is down a robust $0.10 per share over the past 60-days. The growth rate for the quarter is 35.7%.

AMAT shares have recovered approximately 50% of the gains made following the collapse in the stock price in March. Unfortunately, it has not been able to recapture the 200-day moving average. That being said, with 5g about to substantially expand throughout the globe and the work from home mentality sparking demand, this company will be set up for the long run.

Denny’s

After taking a drubbing in March, Denny’s (DENN)share price bounced 82% in April but is still down 57% over the last quarter. The company is currently sporting a price to earnings ratio below 5, compared to the broader restaurant and hospitality industry which is closer to 12. The company is scheduled to release Q1 financial results on Thursday, May 14. Expectations are for the company to earn $0.13 per share on 101.55 million dollars. This compares to $0.17 per share in the prior quarter. Earnings estimate on DENN has declined nearly 19% over the past 30-days dropping from $1.6 per share down to $0.13 per share.

The stock price remains under pressure and has been unable to recover resistance. This industry is beaten down but it could get worse with a second wave of the COVID-19 throughout the United States. This sector has better opportunities with other names.