Lam Research (LRCX) Q1 Earnings: What To Expect

Petr Huřťák /
2022/10/18 5:17 am EDT
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Semiconductor equipment maker Lam Research (NASDAQ:LCRX) will be announcing earnings results tomorrow after market hours. Here's what you need to know.

Last quarter Lam Research reported revenues of $4.63 billion, up 11.8% year on year, beating analyst revenue expectations by 10%. It was a strong quarter for the company, with a beat on the bottom line and guidance for the next quarter above analysts' estimates.

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 14% year on year to $4.9 billion, slowing down from the 35.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $9.54 per share.

Lam Research Total Revenue

The 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 the whole sector has been facing a sell-off since late last year, with stocks down on average 10.1% over the last month. Lam Research is down 19.9% during the same time, and is heading into the earnings with analyst price target of $477, compared to share price of $326.

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.