Market Overview

GT Advanced Technologies Reports Solid Guidance, Beats Full Year EPS Expectations

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GT Advanced Technologies (NASDAQ: GTAT) moved higher on the Tuesday session, as it was up by 5.87 percent.

The stock made its move based on a fairly strong quarter, along with a beat its Q2 Adj. Loss of $0.16/Share vs $0.14/Share Loss Est., Sales $58M vs $64.4M Est.

The guidance figure was what was truly important, which is provided below as a part of a breakdown.

8-5-14_gtat_pic_1.png
(Source: GT Advanced Technologies)

What was truly noticeable about GT Advanced updated guidance range was the tightening of the range from $0.02-$0.18 to $0.12-$0.18. While the upper end of the range stayed essentially the same and revenue outlook narrowed to $600 to $700 million for FY 2014.

UBS mentioned in a research report that was released on July 7 that GT Advanced Technologies revenue would be back-end loaded, and that EPS for FY 2014 will be $0.12. UBS' estimates for FY 2014 EPS was at the updated lower end of the range, which may be why the stock moved so high on Tuesday's trading session.

UBS also offered a forecast on the number of sapphire screens would be needed for Apple's (NASDAQ: AAPL) upcoming 2H product launch:

“In our analysis we believe that GT needs to get the sapphire to Apple's partners at least 2 months ahead of time. So, in order for GT to hit our Apple's team's 3Q14 estimates which has iWatches at 1m units and the larger screen iPhone 6L (5.5 in) at 2.2M units, we estimate GT needs to get 11.5M TIEs (two inch equivalents) of sapphire to Apple's partner all by the end of July . Our table shows that this is possible. If we add up all of the sapphire from March thru July, we have 12.8M TIEs.”

Currently the consensus analyst price target for GT Advanced Technologies is $20. There may be further upside from Tuesday's evening quote of $15.03.

Latest Ratings for GTAT

DateFirmActionFromTo
Sep 2014DoughertyDowngradesBuySell
Sep 2014Canaccord GenuityMaintainsHold
Sep 2014PiperJaffrayDowngradesOverweightNeutral

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