Semiconductor equipment maker Lam Research (NASDAQ: LRCX) will be reporting results this Wednesday after market hours. Here’s what to look for.
Lam Research met analysts’ revenue expectations last quarter, reporting revenues of $6.72 billion, up 30% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Lam Research a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lam Research’s revenue to grow 53.7% year on year, improving from the 27.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lam Research has a history of exceeding Wall Street’s expectations.
Looking at Lam Research’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Penguin Solutions delivered year-on-year revenue growth of 67.7%, beating analysts’ expectations by 8.8%, and Micron reported revenues up 379%, topping estimates by 6.4%. Penguin Solutions traded up 13.1% following the results while Micron was also up 3%.
Read our full analysis of Penguin Solutions’s results here and Micron’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.8% on average over the last month. Lam Research is down 9.4% during the same time and is heading into earnings with an average analyst price target of $375.90 (compared to the current share price of $273.88).
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