Earnings To Watch: Lam Research (LRCX) Reports Q2 Results Tomorrow

Radek Strnad /
2023/01/24 4:15 am EST

Semiconductor equipment maker Lam Research (NASDAQ:LCRX) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Lam Research reported revenues of $5.07 billion, up 17.8% year on year, beating analyst revenue expectations by 3.36%. It was a strong quarter for the company, with a beat on the bottom line and very optimistic guidance for the next quarter.

Is Lam Research buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Lam Research's revenue to grow 20.2% year on year to $5.08 billion, in line with the 22.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $10 per share.

Lam Research Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

With Lam Research being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for semiconductor stocks, but there has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 17.5% over the last month. Lam Research is up 21.1% during the same time, and is heading into the earnings with analyst price target of $478.90, compared to share price of $491.03.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.