- Lam Research reported an adjusted EPS of 91 cents, surpassing the estimate of 88 cents.
- Revenue reached $4.38 billion, a 16% increase year-over-year, exceeding the forecast of $4.3 billion.
- Systems revenue was $2.63 billion, up 14% from the previous year, slightly above the expected $2.6 billion.
- Customer support-related and other revenue grew by 20% year-over-year to $1.75 billion, beating the estimate of $1.72 billion.
- The adjusted gross margin is reported at 47.5%, a minor decrease from 47.6% year-over-year, but higher than the expected 47.1%.
- Adjusted operating margin rose to 30.7%, compared to 30% from the previous year, and above the estimate of 30.1%.
- Capital expenditure increased to $188.3 million, compared to $115.3 million last year and exceeding the forecast of $111.6 million.
- Following the earnings report, Lam Research shares climbed 2.5% in post-market trading, reaching $77.00.
- Market sentiment appears positive with 22 buy recommendations, 12 holds, and no sell recommendations.
Lam Research on Smartkarma
Analysts on Smartkarma, such as Baptista Research and William Keating, have been closely covering Lam Research Corporation. Baptista Research recently analyzed Lam’s financial performance in the September Q1 Earnings Conference Call for 2024, where Tim Archer and Doug Bettinger provided insights. The company exceeded revenue and earnings per share expectations, indicating a strong performance. Similarly, William Keating‘s report highlighted Lam Research‘s consistent growth, with Q324 revenues up 7.8% QoQ and 19.8% YoY. Despite positive trends, the company still aims to surpass previous revenue peaks.
In another report by Baptista Research, Lam Research‘s success with advanced memory technologies was emphasized. The June 2024 quarter results demonstrated solid performance, exceeding guidance in revenue, profitability, and earnings per share. Notably, a 22% sequential revenue increase in the Customer Support Business Group was driven by Reliant systems and spare parts sales. Lam Research also achieved a milestone with its Malaysian factory shipping its 5,000th chamber, enhancing its global manufacturing footprint for long-term cost reduction goals.
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
Analysts looking at the long-term outlook for Lam Research, a company that manufactures semiconductor processing equipment, are generally positive. With a Growth score of 3, experts foresee steady expansion in the company’s operations over the coming years. Lam Research‘s Resilience score of 4 also indicates that it is well-positioned to withstand market fluctuations and economic challenges, adding to its appeal for investors seeking stability. Although scoring in the mid-range, with Value and Dividend at 2 and Momentum at 2, Lam Research‘s overall outlook seems promising based on these Smartkarma Smart Scores.
Lam Research Corporation offers semiconductor processing equipment used globally in the production of integrated circuits. Their products play a vital role in depositing films on silicon wafers and etching circuit designs. The company’s favorable Resilience score of 4 suggests a strong ability to navigate uncertainties, bolstered by a Growth score of 3 indicating expected expansion. While Value, Dividend, and Momentum scores hover around the midpoint, Lam Research‘s core activities and Smart Scores point towards a positive trajectory in the long term.
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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