Lam Research Q2 Earnings Preview and Market Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Source: seekingalpha
- Earnings Announcement: Lam Research is set to release its Q2 earnings on January 28, with consensus EPS at $1.17 and revenue at $5.24 billion, indicating sustained profitability amid market fluctuations.
- Historical Performance: Over the past two years, LRCX has beaten EPS and revenue estimates 100% of the time, showcasing strong performance management and enhancing investor confidence in the company's operational capabilities.
- Market Outlook: Management projects Q2 revenue around $5.2 billion, reflecting approximately 21% year-over-year growth, although this is a slowdown from 27% in Q1 due to challenges in the Chinese market, highlighting external pressures on growth.
- Revenue Impact Factors: Analysts note that the recently implemented 50% affiliate rule and corrections in overordering from the Chinese market are expected to pose significant revenue headwinds in the coming quarters, particularly given the substantial contribution of the Chinese market to total revenue (30-40%).
Analyst Views on LRCX
Wall Street analysts forecast LRCX stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LRCX is 192.50 USD with a low forecast of 142.00 USD and a high forecast of 265.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
18 Buy
4 Hold
0 Sell
Strong Buy
Current: 222.870
Low
142.00
Averages
192.50
High
265.00
Current: 222.870
Low
142.00
Averages
192.50
High
265.00
About LRCX
Lam Research Corporation is a global supplier of wafer fabrication equipment and services to the semiconductor industry. The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Its products and services are designed to help its customers build devices that are used in a variety of electronic products, including mobile phones, personal computers, servers, wearables, automotive vehicles, and data storage devices. Its product families include ALTUS, SABRE, SPEED, Striker, VECTOR, Flex, Vantex, Kiyo, Versys Metal, Syndion, Coronus, and DV-Prime, Da Vinci, EOS, and SP Series. Its customer base includes semiconductor memory, foundries, and integrated device manufacturers that make products such as non-volatile memory, dynamic random-access memory, and logic devices. It offers services in areas, such as nanoscale applications enablement, chemistry, plasma and fluidics, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
