Semiconductor equipment maker Lam Research (NASDAQ: LRCX) will be announcing earnings results this Wednesday after the bell. Here’s what investors should know.
Lam Research beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $5.17 billion, up 33.6% year on year. It was a stunning quarter for the company, with a significant improvement in its inventory levels 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, analysts are expecting Lam Research’s revenue to grow 25.7% year on year to $5.24 billion, improving from the 19.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.22 per share.
Analysts covering the company have generally 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 1.8% on average.
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. Micron delivered year-on-year revenue growth of 46%, beating analysts’ expectations by 1.8%, and Penguin Solutions reported revenues up 8.6%, falling short of estimates by 1.3%. Micron traded down 2.9% following the results while Penguin Solutions was also down 15.9%.
Read our full analysis of Micron’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 5.2% on average over the last month. Lam Research is up 9.1% during the same time and is heading into earnings with an average analyst price target of $130.46 (compared to the current share price of $144.24).
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