Examining the Future: Lam Research's Earnings Outlook

Lam Research LRCX is gearing up to announce its quarterly earnings on Wednesday, 2025-04-23. 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 $0.88.

Anticipation surrounds Lam Research's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Historical Earnings Performance

The company's EPS beat by $0.03 in the last quarter, leading to a 7.43% increase in the share price on the following day.

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

Tracking Lam Research's Stock Performance

Shares of Lam Research were trading at $62.39 as of April 21. Over the last 52-week period, shares are down 28.05%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Views on Lam Research

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Lam Research.

Analysts have provided Lam Research with 12 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $96.0, suggesting a potential 53.87% upside.

Understanding Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of KLA, Applied Mat and Teradyne, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for KLA, with an average 1-year price target of $794.43, suggesting a potential 1173.33% upside.
• Analysts currently favor an Buy trajectory for Applied Mat, with an average 1-year price target of $193.0, suggesting a potential 209.34% upside.
• Analysts currently favor an Outperform trajectory for Teradyne, with an average 1-year price target of $123.79, suggesting a potential 98.41% upside.

Snapshot: Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for KLA, Applied Mat and Teradyne, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Lam Research ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Delving into Lam Research's Background

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.

A Deep Dive into Lam Research's Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Lam Research displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 16.44%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Lam Research's net margin is impressive, surpassing industry averages. With a net margin of 27.22%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Lam Research's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 13.79%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Lam Research's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 6.05%, the company showcases efficient use of assets and strong financial health.

Debt Management: Lam Research's debt-to-equity ratio surpasses industry norms, standing at 0.57. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

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.