We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Lam Research (LRCX) Beats on Q1 Earnings, Lags Revenue
Read MoreHide Full Article
Lam Research Corporation (LRCX - Free Report) reported first quarter fiscal 2017 non-GAAP earnings of $1.81 per share, surpassing the Zacks Consensus Estimate of $1.77. Earnings were up 0.8% sequentially but down 0.3% year over year.
Shares gained 2.27% in the after-hour trade following better-than-expected results.
Revenues of $1.63 billion increased 5.6% sequentially and 2.0% year over year. However, revenues were slightly below the Zacks Consensus Estimate of $1.64 billion.
Revenues by Geography
Region-wise, Taiwan contributed 26%, Korea accounted for 21%, Japan brought in 15%, China contributed 14% and Southeast Asia generated 12%. The U.S. and Europe accounted for 7% and 3% of revenues, respectively.
Shipments
Total system shipments were $1.71 billion during the reported quarter, up 7.4% from $1.59 billion reported last quarter.
Margins
Non-GAAP gross profit was $737.4 million or 45.2% of revenues, reflecting a decrease of 140 basis points (bps) sequentially and 132 bps year over year.
Total operating expenses were $371.6 million, 2.8% higher sequentially. Operating margin was 22.4%, reflecting a decrease of 79 bps from the prior quarter and 136 bps from the year-ago quarter.
Net Income
GAAP net income was $263.8 million ($1.47 per share) compared with $258.9 million ($1.46 per share) last quarter and $288.7 million ($1.66 per share) in the year-ago quarter.
Non-GAAP net income was $322.1 million (19.7% of sales) compared with $314.8 million (20.4%) last quarter and $313.0 million (19.6%) in the year-ago quarter.
Balance Sheet
Exiting fiscal first-quarter 2017, cash and cash equivalents, short-term investments, and restricted cash and investment balances were $7.2 billion compared with $7.0 billion at the end of fiscal fourth-quarter 2016.
Capital expenditures amounted to $42.0 million. The company paid $48.1 million in cash dividends to stockholders during the Sep 2016 quarter.
Guidance
Lam Research provided guidance for the second quarter of fiscal 2016.
On a non-GAAP basis, the company expects revenues of approximately $1.84 billion (+/- $75 million). Shipments are projected to be roughly $1.85 billion (+/- $75 million). Gross margin is predicted to be around 46.0% (+/-1%), while operating margin is likely to be about 25.0% (+/-1%).
Earnings per share are projected at $2.18 (+/- 10 cents) on a share count of nearly 179 million. The Zacks Consensus Estimate is pegged at $1.80 per share, which makes guidance weaker than expected.
Our Take
Lam Research delivered decent fiscal first-quarter 2017 results with earnings outperforming our estimates while revenues slightly missing it.
Calander year 2016 has been pretty good for the company as it continues to see strong success in the areas of device architecture, process flow and advanced packaging technology inflections.
The company has been improving on WFE market share significantly since 2013 and expects to continue making gains.
Lam Research continues to see increased adoption rates of 3D NAND technology, FinFETs and multi-patterning. The company has initiated cost reduction and density scaling for 3D NAND and new memory technologies.
The company is likely to remain the market leader in dielectric etches as VECTOR Strata and ALTUS deposition and its Flex and Kiyo etch products are extremely successful thus far. It anticipates strong demand for leading-edge silicon in the enterprise market to continue, driven by the long-term move to the cloud, storage and networking applications.
Moreover, Lam Research is making good progress with its customer support business and anti-trust agency reviews.
During the quarter, Lam Research terminated its proposed acquisition of California-based KLA-Tencor (KLAC - Free Report) , following antitrust objections from the Justice Department. The Justice Department’s antitrust division cited serious concerns over the deal as the combined company might restrict competition. Nonetheless, the fact that the company will not have to shell out a merger termination fee is a positive.
However, concerns persist in the form of volatility and lower growth expectations globally, with a slow-but-steady improvement in some developed markets balancing the weakness in certain emerging economies.
Currently, Lam Research carries a Zacks Rank #3 (Hold). Stocks worth considering in the industry include Intel Corp. (INTC - Free Report) and Applied Materials, Inc. (AMAT - Free Report) .
Applied Materials carries a Zacks Rank #2 (Buy) and witnessed a 1.07% gain in its last day’s stock price. On average, the company delivered a positive earnings surprise 5.05% in the trailing four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Lam Research (LRCX) Beats on Q1 Earnings, Lags Revenue
Lam Research Corporation (LRCX - Free Report) reported first quarter fiscal 2017 non-GAAP earnings of $1.81 per share, surpassing the Zacks Consensus Estimate of $1.77. Earnings were up 0.8% sequentially but down 0.3% year over year.
Shares gained 2.27% in the after-hour trade following better-than-expected results.
Revenues
Revenues of $1.63 billion increased 5.6% sequentially and 2.0% year over year. However, revenues were slightly below the Zacks Consensus Estimate of $1.64 billion.
Revenues by Geography
Region-wise, Taiwan contributed 26%, Korea accounted for 21%, Japan brought in 15%, China contributed 14% and Southeast Asia generated 12%. The U.S. and Europe accounted for 7% and 3% of revenues, respectively.
Shipments
Total system shipments were $1.71 billion during the reported quarter, up 7.4% from $1.59 billion reported last quarter.
Margins
Non-GAAP gross profit was $737.4 million or 45.2% of revenues, reflecting a decrease of 140 basis points (bps) sequentially and 132 bps year over year.
Total operating expenses were $371.6 million, 2.8% higher sequentially. Operating margin was 22.4%, reflecting a decrease of 79 bps from the prior quarter and 136 bps from the year-ago quarter.
Net Income
GAAP net income was $263.8 million ($1.47 per share) compared with $258.9 million ($1.46 per share) last quarter and $288.7 million ($1.66 per share) in the year-ago quarter.
Non-GAAP net income was $322.1 million (19.7% of sales) compared with $314.8 million (20.4%) last quarter and $313.0 million (19.6%) in the year-ago quarter.
Balance Sheet
Exiting fiscal first-quarter 2017, cash and cash equivalents, short-term investments, and restricted cash and investment balances were $7.2 billion compared with $7.0 billion at the end of fiscal fourth-quarter 2016.
Capital expenditures amounted to $42.0 million. The company paid $48.1 million in cash dividends to stockholders during the Sep 2016 quarter.
Guidance
Lam Research provided guidance for the second quarter of fiscal 2016.
On a non-GAAP basis, the company expects revenues of approximately $1.84 billion (+/- $75 million). Shipments are projected to be roughly $1.85 billion (+/- $75 million). Gross margin is predicted to be around 46.0% (+/-1%), while operating margin is likely to be about 25.0% (+/-1%).
Earnings per share are projected at $2.18 (+/- 10 cents) on a share count of nearly 179 million. The Zacks Consensus Estimate is pegged at $1.80 per share, which makes guidance weaker than expected.
Our Take
Lam Research delivered decent fiscal first-quarter 2017 results with earnings outperforming our estimates while revenues slightly missing it.
Calander year 2016 has been pretty good for the company as it continues to see strong success in the areas of device architecture, process flow and advanced packaging technology inflections.
The company has been improving on WFE market share significantly since 2013 and expects to continue making gains.
Lam Research continues to see increased adoption rates of 3D NAND technology, FinFETs and multi-patterning. The company has initiated cost reduction and density scaling for 3D NAND and new memory technologies.
The company is likely to remain the market leader in dielectric etches as VECTOR Strata and ALTUS deposition and its Flex and Kiyo etch products are extremely successful thus far. It anticipates strong demand for leading-edge silicon in the enterprise market to continue, driven by the long-term move to the cloud, storage and networking applications.
Moreover, Lam Research is making good progress with its customer support business and anti-trust agency reviews.
During the quarter, Lam Research terminated its proposed acquisition of California-based KLA-Tencor (KLAC - Free Report) , following antitrust objections from the Justice Department. The Justice Department’s antitrust division cited serious concerns over the deal as the combined company might restrict competition. Nonetheless, the fact that the company will not have to shell out a merger termination fee is a positive.
However, concerns persist in the form of volatility and lower growth expectations globally, with a slow-but-steady improvement in some developed markets balancing the weakness in certain emerging economies.
LAM RESEARCH Price, Consensus and EPS Surprise
LAM RESEARCH Price, Consensus and EPS Surprise | LAM RESEARCH Quote
Currently, Lam Research carries a Zacks Rank #3 (Hold). Stocks worth considering in the industry include Intel Corp. (INTC - Free Report) and Applied Materials, Inc. (AMAT - Free Report) .
Intel delivered a positive earnings surprise of 11.86%, on average, in the trailing four quarters. It carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Applied Materials carries a Zacks Rank #2 (Buy) and witnessed a 1.07% gain in its last day’s stock price. On average, the company delivered a positive earnings surprise 5.05% in the trailing four quarters.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>