Semiconductor equipment maker Lam Research (NASDAQ: LRCX) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Lam Research beat analysts’ revenue expectations last quarter, reporting revenues of $5.34 billion, up 22.1% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.
Is Lam Research a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lam Research’s revenue to grow 21.6% year on year, slowing from the 24.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lam Research has a history of exceeding Wall Street’s expectations.
Looking at Lam Research’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 196%, beating analysts’ expectations by 20.1%, and Penguin Solutions reported a revenue decline of 6.2%, topping estimates by 0.8%. Micron traded down 3.8% following the results while Penguin Solutions was up 13.4%.
Read our full analysis of Micron’s results here and Penguin Solutions’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 27.2% on average over the last month. Lam Research is up 13.2% during the same time and is heading into earnings with an average analyst price target of $281.23 (compared to the current share price of $264.17).
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