Advertisement
Canada markets closed

  • S&P/TSX

    21,969.24
    +83.86 (+0.38%)
     

  • S&P 500

    5,099.96
    +51.54 (+1.02%)
     

  • DOW

    38,239.66
    +153.86 (+0.40%)
     

  • CAD/USD

    0.7316
    -0.0007 (-0.09%)
     

  • CRUDE OIL

    83.66
    +0.09 (+0.11%)
     

  • Bitcoin CAD

    87,230.05
    -1,134.82 (-1.28%)
     

  • CMC Crypto 200

    1,329.29
    -67.25 (-4.82%)
     

  • GOLD FUTURES

    2,349.60
    +7.10 (+0.30%)
     

  • RUSSELL 2000

    2,002.00
    +20.88 (+1.05%)
     

  • 10-Yr Bond

    4.6690
    -0.0370 (-0.79%)
     

  • NASDAQ

    15,927.90
    +316.14 (+2.03%)
     

  • VOLATILITY

    15.03
    -0.34 (-2.21%)
     

  • FTSE

    8,139.83
    +60.97 (+0.75%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6838
    +0.0017 (+0.25%)
     

Lam Research (LRCX) to Report Q3 Earnings: What's in Store?

Zacks Equity Research
·4 min read

Lam Research Corporation LRCX is slated to report third-quarter fiscal 2021 results on Apr 21. In the last reported quarter, the company delivered an earnings surprise of 6.9%.

Lam Research’s surprise history has been decent. The company surpassed earnings estimates in three out of the trailing four quarters and missed once, with the average surprise being 7.4%.

For the fiscal third quarter, the Zacks Consensus Estimate for earnings has been stable at $6.56 per share over the past 30 days. This indicates an increase of 64.8% from the year-ago reported figure.

The consensus mark for revenues is pegged at $3.70 billion, implying an increase of 47.8% from the year-ago reported figure.

Let’s see how things have shaped up for this announcement.

Lam Research Corporation Price and Consensus

Lam Research Corporation price-consensus-chart | Lam Research Corporation Quote

Factors to Note

Lam Research has been witnessing improvement in memory and semiconductor equipment markets. Increased adoption rates for 3D NAND technology, FinFETs and multi-patterning is expected to have aided its top-line growth.

During the last reported quarter, the company witnessed strong demand in key electronic categories, including PCs, storage and networking. The trend is expected to have persisted in the to-be-reported quarter, thanks to continuation of the work-and-learn-from-home trend.

Lam Research provides advanced semiconductors and memory solutions that power 5G, artificial intelligence as well as the Internet of Things. Rising demand for these solutions is expected to have aided top-line growth of the company.

It has been undertaking cost-reduction activities and density scaling for 3D NAND, as well as new memory technologies. It witnessed share gains in the foundry and logic segment. All these factors are likely to boost Lam Research’s upcoming results.

However, the company has been facing significant competition in all product and service categories in the semiconductor capital equipment market.

Also, volatility in the PC market is likely to have weighed on its performance.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Lam Research this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Lam Research has a Zacks Rank #3.

Stocks to Consider

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the quarter to be reported.

Waters Corporation WAT has an Earnings ESP of +2.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Verizon Communications Inc. VZ has an Earnings ESP of +0.80% and a Zacks Rank #3.

NXP Semiconductors N.V. NXPI has an Earnings ESP of +2.26% and a Zacks Rank #3.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?”

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lam Research Corporation (LRCX) : Free Stock Analysis Report

Waters Corporation (WAT) : Free Stock Analysis Report

NXP Semiconductors N.V. (NXPI) : Free Stock Analysis Report

To read this article on Zacks.com click here.