Lam Research Corporation Reports Strong Fiscal Q1 2024 Results
Lam Research Corporation (NASDAQ: LRCX), a leading supplier of wafer fabrication equipment and services to the semiconductor industry, announced its financial results for the fiscal first quarter ended September 29, 2024.
Key Financial Metrics:
| Metric | Q1 2024 | Q4 2023 | Q1 2023 | YoY Change | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Revenue | $4.17B | $3.87B | $3.48B | +19.7% | +8% | $4.05B |
| GAAP EPS | $0.86 | $0.78 | $0.67 | +28.4% | +10% | $0.80 |
| Non-GAAP EPS | $0.86 | $0.81 | $0.68 | +26.5% | +6% | $0.81 |
Lam Research exceeded both revenue and earnings expectations, showcasing robust growth driven by strong demand in the semiconductor sector. The company's revenue increased by 19.7% year-over-year, and its earnings per share surpassed analyst estimates, reflecting effective cost management and operational efficiency.
Segment Revenue Performance:
| Segment | Q1 2024 Revenue | Previous Guidance | YoY Change |
|---|---|---|---|
| Systems Revenue | $2.39B | $2.45B | +16% |
| Customer Support & Others | $1.78B | $1.6B | +25% |
The Systems Revenue segment saw a 16% increase year-over-year, slightly below the forecast, while Customer Support and Other Revenues outperformed expectations with a 25% increase, highlighting the strength in aftermarket services and parts sales.
Operational Highlights:
| Operational Metric | Q1 2024 | Q4 2023 |
|---|---|---|
| Gross Margin (GAAP) | 48.0% | 47.5% |
| Operating Margin (GAAP) | 30.3% | 29.1% |
| Deferred Revenue | $2.05B | $1.55B |
Lam Research reported improvements in both gross and operating margins, indicating enhanced profitability. The increase in deferred revenue suggests a strong backlog and future revenue potential.
Management Commentary: Tim Archer, President and CEO, stated, 'With continued strong execution, Lam delivered financial performance ahead of expectations. Our investments in key technology inflections position us well to outperform WFE growth in 2025 and beyond.'
Dividends and Share Repurchase: Lam Research declared a post-split cash dividend of $0.23 per share and continued its share buyback program, reflecting its commitment to returning capital to shareholders.
Forward Guidance: For the fiscal second quarter ending December 29, 2024, Lam Research anticipates revenue between $4.0 billion and $4.6 billion, with GAAP EPS expected to range from $0.77 to $0.97, indicating a positive outlook.
Stock Price Movement: Following the earnings release, Lam Research shares rose by approximately 3.2% in post-market trading, reflecting investor confidence in the company's strong performance and optimistic guidance.
Overall, Lam Research's fiscal Q1 2024 results demonstrate its solid market position and strategic focus on growth areas within the semiconductor industry.
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