Semiconductor equipment maker Lam Research (NASDAQ: LRCX) will be reporting results this Wednesday after market hours. Here’s what to look for.
Lam Research beat analysts’ revenue expectations last quarter, reporting revenues of $5.84 billion, up 23.8% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
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 29.4% year on year, slowing from the 33.6% 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 Q2 results, giving us a hint as to what we can expect. Amkor delivered year-on-year revenue growth of 25.6%, beating analysts’ expectations by 4.5%, and Intel reported revenues up 25.4%, topping estimates by 11.7%. Intel traded down 12.2% following the results.
Read our full analysis of Amkor’s results here and Intel’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). Unfortunately, semiconductors stocks have struggled in this environment as share prices are down 17.1% on average over the last month. Lam Research is down 29.4% during the same time and is heading into earnings with an average analyst price target of $372.32 (compared to the current share price of $290.01).
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