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What's in the Cards for Lam Research (LRCX) in Q2 Earnings?
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Lam Research Corporation (LRCX - Free Report) is scheduled to report second-quarter fiscal 2024 results on Jan 24.
For the fiscal second quarter, the company expects revenues of $3.7 billion (+/- $300 million). The Zacks Consensus Estimate for revenues is pegged at $3.71 billion, indicating a decline of 29.7% from the year-ago reported figure.
The company anticipates non-GAAP earnings per share (EPS) of $7.00 (+/- 75 cents) for second-quarter fiscal 2024. The consensus mark for EPS is pegged at $7.05, indicating a 34.2% fall from the prior-year reported figure. The estimate has been unchanged over the past 30 days.
Lam Research surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.6%.
Strength in 3D DRAM and advanced packaging is expected to have been the key catalyst for the company.
The impact of the LCRX’s technological advancements, especially with AI, is likely to be reflected in the upcoming results.
Growing etch and deposition intensity, owing to increasing technology inflections in 3D architectures, might have been a positive.
Signs of improvement in DRAM spending on the back of HBM-related demand might have benefited Lam Research in the quarter under review.
The growing proliferation of 5G, artificial intelligence and the Internet of Things is likely to have continued to bolster the adoption rate of the company’s advanced semiconductor and memory solutions in the fiscal second quarter.
However, weakening memory spending, especially in NAND, might have been a major concern for the company during the to-be-reported quarter. This is anticipated to have negatively impacted its system revenues.
The Zacks Consensus Estimate for system revenues is pegged at $2.27 billion, indicating a decline of 36% from the year-ago quarter.
Macroeconomic uncertainties, inflationary pressure, geo-political tensions and softness in consumer-focused markets are anticipated to have acted as headwinds for the company in the quarter under review. All these factors might have impacted the performance of the Customer Support Business Group in the to-be-reported quarter.
The Zacks Consensus Estimate for Customer Support Business Group revenues is pegged at $1.44 billion, indicating a decline of 16.8% from the year-ago quarter.
Lam Research has also been facing significant competition in all product and service categories in the semiconductor capital equipment market. The impacts of this are likely to be reflected in the upcoming results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Lam Research this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Lam Research currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies that, per our model, have the right combination of elements to post an earnings beat in the soon-to-be-reported quarterly results.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
ASML Holding (ASML - Free Report) has an Earnings ESP of +3.32% and a Zacks Rank #2 at present.
ASML Holding is set to report fourth-quarter 2023 results on Jan 24. The Zacks Consensus Estimate for ASML’s earnings is pegged at $5.12 per share, suggesting growth of 8.9% from the prior-year fiscal period’s reported figure.
Image: Bigstock
What's in the Cards for Lam Research (LRCX) in Q2 Earnings?
Lam Research Corporation (LRCX - Free Report) is scheduled to report second-quarter fiscal 2024 results on Jan 24.
For the fiscal second quarter, the company expects revenues of $3.7 billion (+/- $300 million). The Zacks Consensus Estimate for revenues is pegged at $3.71 billion, indicating a decline of 29.7% from the year-ago reported figure.
The company anticipates non-GAAP earnings per share (EPS) of $7.00 (+/- 75 cents) for second-quarter fiscal 2024. The consensus mark for EPS is pegged at $7.05, indicating a 34.2% fall from the prior-year reported figure. The estimate has been unchanged over the past 30 days.
Lam Research surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.6%.
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote
Key Factors to Consider
Strength in 3D DRAM and advanced packaging is expected to have been the key catalyst for the company.
The impact of the LCRX’s technological advancements, especially with AI, is likely to be reflected in the upcoming results.
Growing etch and deposition intensity, owing to increasing technology inflections in 3D architectures, might have been a positive.
Signs of improvement in DRAM spending on the back of HBM-related demand might have benefited Lam Research in the quarter under review.
The growing proliferation of 5G, artificial intelligence and the Internet of Things is likely to have continued to bolster the adoption rate of the company’s advanced semiconductor and memory solutions in the fiscal second quarter.
However, weakening memory spending, especially in NAND, might have been a major concern for the company during the to-be-reported quarter. This is anticipated to have negatively impacted its system revenues.
The Zacks Consensus Estimate for system revenues is pegged at $2.27 billion, indicating a decline of 36% from the year-ago quarter.
Macroeconomic uncertainties, inflationary pressure, geo-political tensions and softness in consumer-focused markets are anticipated to have acted as headwinds for the company in the quarter under review. All these factors might have impacted the performance of the Customer Support Business Group in the to-be-reported quarter.
The Zacks Consensus Estimate for Customer Support Business Group revenues is pegged at $1.44 billion, indicating a decline of 16.8% from the year-ago quarter.
Lam Research has also been facing significant competition in all product and service categories in the semiconductor capital equipment market. The impacts of this are likely to be reflected in the upcoming results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Lam Research this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Lam Research currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies that, per our model, have the right combination of elements to post an earnings beat in the soon-to-be-reported quarterly results.
Apple (AAPL - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
ASML Holding (ASML - Free Report) has an Earnings ESP of +3.32% and a Zacks Rank #2 at present.
ASML Holding is set to report fourth-quarter 2023 results on Jan 24. The Zacks Consensus Estimate for ASML’s earnings is pegged at $5.12 per share, suggesting growth of 8.9% from the prior-year fiscal period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.