Weak Foundry Spending To Weigh On Applied Materials' Q4 Growth, But Can Pick Up Thereafter

The company fell marginally short of the analyst expectations with Q3 fiscal 2015 earnings report as weak foundry spending weighed on the semiconductor tool division, which constitutes 65% of revenue and 60% of valuation, by our estimation. This factor is expected to negatively impact Applied?s earnings yet again, as slowing economic growth and electronics demand have forced the company?s customers to puch out planned capital investment and optimize usage of existing capacity. In fact, two of Ap...