Earnings Hits and Misses: Applied Materials, Palo Alto Networks, Ross Stores, Deere

Here’s a quick look at several earnings reports that were released after markets closed on Thursday or before Friday’s opening bell.

Applied Materials Inc. (NASDAQ: AMAT | AMAT Price Prediction) beat both top-line and bottom-line estimates when it reported fiscal second-quarter results after markets closed Thursday. The semiconductor equipment maker said it had earnings per share (EPS) of $1.63, 12 cents above the consensus estimate, and revenue of $5.58 billion, nearly 9% better than expected. Third-quarter EPS guidance was raised from a prior range of $1.44 to $1.56 to a new range of $1.70 to $1.82, and revenue guidance was raised from $4.97 billion to $5.52 billion, plus or minus $200 million in both estimates.

In Friday’s premarket session, shares were up about 1%, at $131.69 in a 52-week range of $53.32 to $146.00. The consensus price target is $156.38.

Palo Alto Networks Inc. (NYSE: PANW) also reported late Thursday and also beat consensus estimates. EPS came in at $1.38, 10 cents better than expected, and revenue topped estimates by $16 million, reaching $1.07 billion. The company boosted its fiscal year EPS guidance from a prior range of $5.80 to $5.90 to a new range of $5.97 to $5.99 and lifted revenue guidance from $4.13 billion to $4.15 billion.

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Shares traded up by about 6% to $363.40, in a 52-week range of $217.48 to $403.00. The consensus price target is $441.28.

Ross Stores Inc. (NASDAQ: ROST) reported first-quarter numbers Thursday that also beat on the top and bottom lines. Revenue of $4.52 billion was nearly 19% above the consensus estimate, and EPS of $1.34 was 51 cents better than expected. The company guided full-year same-store sales to rise by 7% to 9% compared to pre-pandemic sales in 2019. Ross also said it plans to repurchase up to $1.5 billion in stock by the end of next year.

The stock traded up about 1.5% in Friday’s premarket, at $124.30 in a 52-week range of $79.65 to $134.22. The consensus price target is $136.07

Deere & Co. (NYSE: DE) posted its first-quarter results before Friday’s opening bell and also reported better-than-expected numbers for both EPS and revenue. Sales totaled $11.0 billion, 7% above the consensus estimate, and EPS beat expectations by $1.30 to come in at $5.68. The company raised its full-year net income estimate from a prior range of $4.6 billion to $5.0 billion to a new range of $5.3 billion to $5.7 billion. Deere also noted that it expects to face “supply-chain pressures” through the remainder of 2021.

Shares traded up about 1.8% to $361.50, in a 52-week range of $138.76 to $400.34. The consensus price target is $398.47.

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