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) to Report Q2 Earnings: What's in Store?
Read MoreHide Full Article
Lam Research Corporation (LRCX - Free Report) is slated to report second-quarter fiscal 2019 results on Jan 29. In the last reported quarter, the company delivered a positive earnings surprise of 6%.
Lam Research’s surprise history has been pretty impressive. The company surpassed estimates in each of the trailing four quarters, with the average being 6.9%.
For the fiscal second quarter, the Zacks Consensus Estimate for earnings has decreased 0.3% to $3.81 per share over the past 30 days. This indicates a decline of 1.6% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.50 billion, implying a decline of 0.8% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
Lam Research has been witnessing improvement in the memory market, led by NAND. Increased adoption rates for 3D NAND technology, FinFETs and multi-patterning are expected to have aided its top-line growth.
Spending in the foundry and logic segment had been strong throughout 2019. The company witnessed share gains in the foundry and logic segment. All these factors are likely to have boosted Lam Research’s top-line growth in the quarter.
The company has been undertaking cost-reduction activities and density scaling for 3D NAND, as well as new memory technologies. For the quarter to be reported, it expects revenues to be $2.5 billion (+/- $150 million).
However, the company has been facing significant competition in all product and service categories in the semiconductor capital equipment market. Also, volatility in the PC market is likely to have weighed on its performance. Weakness in PCs, which may offset expansion in 3D NAND, could affect fiscal second-quarter results.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Lam Research this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of -0.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Lam Research has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post a positive earnings surprise in the quarter to be reported.
MKS Instruments, Inc. (MKSI - Free Report) has an Earnings ESP of +8.41% and a Zacks Rank of 1.
WESCO International (WCC - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank of 3.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Lam Research (LRCX) to Report Q2 Earnings: What's in Store?
Lam Research Corporation (LRCX - Free Report) is slated to report second-quarter fiscal 2019 results on Jan 29. In the last reported quarter, the company delivered a positive earnings surprise of 6%.
Lam Research’s surprise history has been pretty impressive. The company surpassed estimates in each of the trailing four quarters, with the average being 6.9%.
For the fiscal second quarter, the Zacks Consensus Estimate for earnings has decreased 0.3% to $3.81 per share over the past 30 days. This indicates a decline of 1.6% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.50 billion, implying a decline of 0.8% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote
Factors to Note
Lam Research has been witnessing improvement in the memory market, led by NAND. Increased adoption rates for 3D NAND technology, FinFETs and multi-patterning are expected to have aided its top-line growth.
Spending in the foundry and logic segment had been strong throughout 2019. The company witnessed share gains in the foundry and logic segment. All these factors are likely to have boosted Lam Research’s top-line growth in the quarter.
The company has been undertaking cost-reduction activities and density scaling for 3D NAND, as well as new memory technologies. For the quarter to be reported, it expects revenues to be $2.5 billion (+/- $150 million).
However, the company has been facing significant competition in all product and service categories in the semiconductor capital equipment market. Also, volatility in the PC market is likely to have weighed on its performance. Weakness in PCs, which may offset expansion in 3D NAND, could affect fiscal second-quarter results.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Lam Research this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of -0.35%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Lam Research has a Zacks Rank #3.
Stocks That Warrant a Look
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post a positive earnings surprise in the quarter to be reported.
Apple (AAPL - Free Report) has an Earnings ESP of +4.08% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
MKS Instruments, Inc. (MKSI - Free Report) has an Earnings ESP of +8.41% and a Zacks Rank of 1.
WESCO International (WCC - Free Report) has an Earnings ESP of +2.35% and a Zacks Rank of 3.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>