Yahoo Finance Lam Research Earnings: What To Look For From LRCX
Semiconductor equipment maker Lam Research (NASDAQ:LCRX) will be reporting results tomorrow afternoon. Here's what investors should know.
Lam Research beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $3.79 billion, down 2% year on year. It was a strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
Is Lam Research a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Lam Research's revenue to grow 19.5% year on year to $3.83 billion, a reversal from the 30.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.59 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lam Research has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.1% on average.
Looking at Lam Research's peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Amkor posted flat year-on-year revenue, meeting analysts' expectations, and Teradyne reported revenues up 6.6%, topping estimates by 4.1%. Teradyne traded down 13.2% following the results.
Read our full analysis of Amkor's results here and Teradyne's results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share prices down 4.1% on average over the last month. Lam Research is down 16.2% during the same time and is heading into earnings with an average analyst price target of $1,038.5 (compared to the current share price of $888.55).
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