8794

Q1 Semiconductor Manufacturing Earnings: Lam Research (NASDAQ:LRCX) Earns Top Marks


Kayode Omotosho /
2024/06/11 2:46 am EDT

Wrapping up Q1 earnings, we look at the numbers and key takeaways for the semiconductor manufacturing stocks, including Lam Research (NASDAQ:LRCX) and its peers.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was in line with consensus. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but semiconductor manufacturing stocks have shown resilience, with share prices up 9% on average since the previous earnings results.

Best Q1: Lam Research (NASDAQ:LRCX)

Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.

Lam Research reported revenues of $3.79 billion, down 2% year on year, topping analysts' expectations by 1.7%. It was a strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

"With solid revenue and earnings per share performance in the March quarter, Lam is off to a strong start in calendar 2024" said Tim Archer, Lam Research's President and Chief Executive Officer.

Lam Research Total Revenue

The stock is up 13% since the results and currently trades at $1,000.61.

We think Lam Research is a good business, but is it a buy today? Read our full report here, it's free.

Amkor (NASDAQ:AMKR)

Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.

Amkor reported revenues of $1.37 billion, down 7.2% year on year, falling short of analysts' expectations by 0.9%. It was a strong quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.

Amkor Total Revenue

The stock is up 8.7% since the results and currently trades at $34.25.

Is now the time to buy Amkor? Access our full analysis of the earnings results here, it's free.

Kulicke and Soffa (NASDAQ:KLIC)

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $172.1 million, down 0.5% year on year, falling short of analysts' expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

The stock is up 2.5% since the results and currently trades at $45.37.

Read our full analysis of Kulicke and Soffa's results here.

Teradyne (NASDAQ:TER)

Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Teradyne reported revenues of $599.8 million, down 2.9% year on year, surpassing analysts' expectations by 5.2%. It was a solid quarter for the company, with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.

The stock is up 41.2% since the results and currently trades at $142.14.

Read our full, actionable report on Teradyne here, it's free.

Amtech (NASDAQ:ASYS)

Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.

Amtech reported revenues of $25.43 million, down 23.6% year on year, surpassing analysts' expectations by 8.2%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

Amtech scored the biggest analyst estimates beat among its peers. The stock is up 20.4% since the results and currently trades at $5.97.

Read our full, actionable report on Amtech here, it's free.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.