Breaking news in the tech industry as semiconductor equipment supplier Lam Research (LRCX) has returned to earnings growth, surpassing expectations for its fiscal third quarter. The company, based in Fremont, Calif., reported earnings of $7.79 a share on sales of $3.79 billion for the quarter ended March 31, beating analyst predictions of $7.30 a share on sales of $3.72 billion. This marks an 11% increase in earnings compared to the previous year.
Despite the positive earnings growth, sales have declined for the fifth consecutive quarter on a year-over-year basis. Looking ahead, Lam Research forecasts adjusted earnings of $7.50 a share on sales of $3.8 billion for the current quarter, exceeding Wall Street’s expectations of $7.30 a share on sales of $3.77 billion.
Lam Research CEO Tim Archer expressed optimism about the company’s performance, stating, “With solid revenue and earnings-per-share performance in the March quarter, Lam is off to a strong start in calendar 2024. As our customers address the challenges in scaling semiconductors to meet the power and speed requirements for driving AI transformation, Lam is strengthening its leadership and is well-positioned for the significant opportunities ahead.”
Despite the positive outlook, LRCX stock experienced fluctuations in after-hours trading, with the stock down more than 3% at 851.01. The stock closed at 884.89 during the regular trading session on Wednesday. Lam Research stock is currently in a flat base with a buy point of 1,007.39, according to IBD MarketSurge charts.
Industry peer ASML recently posted mixed first-quarter results and offered guidance below expectations, leading to a decline in ASML stock. Lam Research is also trading below its 50-day moving average line, indicating potential challenges ahead in the market.
Stay tuned for more updates on consumer technology, software, and semiconductor stocks by following Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz. For more insights and market analysis, visit IBD MarketSurge for research, charts, data, and coaching all in one place.
