Lam Research Stock Dips After Q4 Results, Q1 Guidance

Lam Research Corporation LRCX shares are down after the company reported its fourth-quarter financial results Wednesday. Here's a look at the details from the report. 

The Details: Lam Research reported quarterly earnings of $7.78 per share, which beat the analyst consensus estimate of $7.58 by 2.64%. Quarterly sales came in at $3.87 billion, which beat the analyst consensus estimate of $3.82 billion and represents a 20.67% increase over sales from the same period last year.

The company reported gross margin was 48.5% of revenue, operating expenses were $689 million and operating income was 30.7% of revenue. Cash and cash equivalents and restricted cash balances increased to $5.9 billion at the end of the June 2024 quarter compared to $5.7 billion at the end of the March 2024 quarter.

Deferred revenue at the end of the June 2024 quarter decreased to $1,552 million compared to $1,746 million the end of the March 2024 quarter.

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“Lam’s June quarter results came in above the midpoint of our guidance, driven by continued solid execution and growth in our customer support business group,” said Tim Archer, Lam Research’s CEO. “We are making strategic investments in R&D and our operations to position Lam to outperform in what we believe will be a multi-year period of strong wafer fab equipment spending.”

Outlook: Lam Research sees first-quarter earnings between $7.25 and $8.75 per share, versus the $8.10 per share estimate. The company sees first-quarter operating margin of 28.5% to 30.5%, versus the 29.7% estimate, and revenue in a range of $3.75 billion to $4.35 billion in the first quarter, versus the $4.04 billion estimate.

LRCX Price Action: According to Benzinga Pro, Lam Research shares are down 2.09% after-hours at $902 after gaining 7.77% during regular trading Wednesday.

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