Lam Research (LRCX) To Report Earnings Tomorrow: Here Is What To Expect

Kayode Omotosho /
2023/04/18 4:01 am EDT
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Semiconductor equipment maker Lam Research (NASDAQ:LCRX) will be reporting earnings tomorrow afternoon. Here's what to expect.

Last quarter Lam Research reported revenues of $5.28 billion, up 24.9% year on year, beating analyst revenue expectations by 3.83%. It was a mixed quarter for the company, with a beat on the bottom line but underwhelming revenue 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 decline 5.25% year on year to $3.85 billion, a deceleration on the 5.53% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.53 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.

Looking at Lam Research's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Micron Technology reported revenue decline of 52.6% year on year, missing analyst estimates by 0.37%. Micron Technology traded flat on the results. Read our full analysis of Micron Technology's results here.

Tech stocks have been under pressure since the end of last year and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 2.33% over the last month. Lam Research is down 4.11% during the same time, and is heading into the earnings with analyst price target of $529.5, compared to share price of $492.2.

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.