Insights Ahead: Lam Research's Quarterly Earnings

Lam Research LRCX is gearing up to announce its quarterly earnings on Wednesday, 2024-10-23. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Lam Research will report an earnings per share (EPS) of $0.80.

Investors in Lam Research are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.06, leading to a 9.87% drop in the share price on the subsequent day.

Here's a look at Lam Research's past performance and the resulting price change:

Performance of Lam Research Shares

Shares of Lam Research were trading at $72.84 as of October 21. Over the last 52-week period, shares are up 24.03%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on Lam Research

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Lam Research.

A total of 12 analyst ratings have been received for Lam Research, with the consensus rating being Buy. The average one-year price target stands at $997.25, suggesting a potential 1269.1% upside.

Comparing Ratings Among Industry Peers

The below comparison of the analyst ratings and average 1-year price targets of KLA, Applied Mat and Teradyne, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for KLA, with an average 1-year price target of $845.19, indicating a potential 1060.34% upside.
• Applied Mat is maintaining an Buy status according to analysts, with an average 1-year price target of $234.4, indicating a potential 221.8% upside.
• Analysts currently favor an Neutral trajectory for Teradyne, with an average 1-year price target of $149.62, suggesting a potential 105.41% upside.

Analysis Summary for Peers

The peer analysis summary outlines pivotal metrics for KLA, Applied Mat and Teradyne, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Lam Research ranks highest in Revenue Growth among its peers. It also leads in Gross Profit. However, it has the lowest Return on Equity.

Unveiling the Story Behind Lam Research

Lam Research is one of the largest semiconductor wafer fabrication equipment manufacturers in the world. It specializes in deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.

Lam Research's Economic Impact: An Analysis

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Lam Research's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 20.71%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Lam Research's net margin is impressive, surpassing industry averages. With a net margin of 26.35%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Lam Research's ROE stands out, surpassing industry averages. With an impressive ROE of 12.32%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Lam Research's ROA excels beyond industry benchmarks, reaching 5.51%. This signifies efficient management of assets and strong financial health.

Debt Management: Lam Research's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.58, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Lam Research visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.