- Lam Research‘s adjusted earnings per share (EPS) for Q3 is reported at $1.04, surpassing the estimate of $1.00.
- The company achieved a revenue of $4.72 billion, marking a 24% year-over-year increase, and exceeding the anticipated $4.64 billion.
- Systems revenue saw a substantial growth of 27% year-over-year, reaching $3.04 billion, outperforming the estimate of $2.89 billion.
- Revenue from customer support and other services increased by 21% year-over-year, hitting $1.68 billion, slightly below the expected $1.72 billion.
- Lam Research improved its adjusted gross margin to 49%, compared to last year’s 48.7%, and above the 48% estimate.
- The adjusted operating margin rose to 32.8%, up from 30.3% year-over-year, and surpassed the 31.9% projection.
- Capital expenditures surged to $288.1 million, far exceeding both last year’s $103.7 million and the forecasted $145.2 million.
- Following the results, shares of Lam Research increased by 4.5% in post-market trading, with the price reaching $69.74.
- The trading volume recorded was 14,955 shares, reflecting increased investor interest.
- Analyst ratings include 25 buys, 8 holds, and 0 sells, indicating strong market confidence.
Lam Research on Smartkarma
Analysts on Smartkarma, including Baptista Research and William Keating, are expressing bullish sentiments towards Lam Research Corporation. Baptista Research‘s reports highlight Lam Research‘s strong operational execution and strategic positioning, with the company surpassing revenue expectations in the December 2024 quarter. The growth in revenue, driven by increased spending in the DRAM and NAND segments, showcases Lam Research‘s ability to navigate market challenges effectively.
Furthermore, William Keating‘s analysis underscores Lam Research‘s continued growth momentum, with the company’s revenues showing consistent positive growth trends. Despite revenue levels still being below previous peaks, Lam Research‘s financial performance exceeding expectations in recent quarters signals optimism for future growth and outperformance. These insights from analysts indicate a positive outlook for Lam Research in the semiconductor landscape.
A look at Lam Research Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Lam Research Corporation shows a promising long-term outlook. With a Growth score of 3 and a Resilience score of 4, the company is positioned for potential expansion and durability in the face of challenges. While the Value, Dividend, and Momentum scores are moderate, the strong showing in Growth and Resilience indicates room for development and a steady foundation.
Lam Research Corporation, a company that manufactures semiconductor processing equipment for integrated circuits, appears to have a balanced outlook according to Smartkarma Smart Scores. With a global reach in selling its products, the company shows strength in growth potential and resilience against market pressures, positioning it well for the future despite moderate scores in Value, Dividend, and Momentum factors.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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