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Lam Research (LRCX) Reports Q4: Everything You Need To Know Ahead Of Earnings


Kayode Omotosho /
2022/07/26 4:14 am EDT
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Semiconductor equipment maker Lam Research (NASDAQ:LCRX) will be reporting results tomorrow after market close. Here's what you need to know.

Last quarter Lam Research reported revenues of $4.06 billion, up 5.52% year on year, missing analyst expectations by 4.33%. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a miss of the top line analyst 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 1.65% year on year to $4.21 billion, slowing down from the 48.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $7.33 per share.

Lam Research Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing two downward revisions over the last thirty days. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Lam Research's peers in the semiconductors segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. NXP Semiconductors reported revenues up 27.5% year on year, exceeding estimates by 1.43%. NXP Semiconductors traded flat on the results. Read our full analysis of NXP Semiconductors's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 4.27% over the last month. Lam Research is up 2.06% during the same time, and is heading into the earnings with analyst price target of $590.2, compared to share price of $459.06.

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.