- Lam Research‘s Q3 Adjusted EPS beats estimates by reporting at $7.79 compared to the estimated $7.31 and $6.99 in the same quarter of the previous year.
- The company had total revenue of $3.79 billion, which decreased by 2% year-over-year but surpassed the estimated revenue of $3.72 billion.
- Systems revenue stands at $2.40 billion exceeding the estimate of $2.25 billion and representing a 6.2% year-over-year growth.
- On the other hand, customer support-related revenue and other sources plunged 13% to $1.40 billion from the estimated $1.48 billion.
- Adjusted gross margin increased significantly to 48.7% from 44% in the same quarter of the previous year and surpassed the estimated 48%.
- The adjusted operating margin also reported a hike, marking 30.3% compared to the estimated 29.6% and 28.3% in the previous year.
- Analysts seem to have a positive outlook on the stock with 20 buys, 11 holds and only 1 sell.
Lam Research on Smartkarma
Analyst coverage on Lam Research on Smartkarma showcases a mix of opinions from top independent analysts. Baptista Research highlights the company’s strong performance in the December quarter of 2023, with higher revenues, gross margin, operating margin, and EPS surpassing guided ranges. Despite a decline in overall wafer fabrication equipment spending, Lam Research nearly doubled its EPS compared to 2019.
On the contrary, William Keating‘s analysis paints a more cautious picture, noting that Lam Research‘s recovery seems to be stalling as the outlook remains subdued. With Q423 revenues slightly exceeding expectations but still down YoY, the memory market recovery is limited to specific areas, posing challenges for Lam Research and its peers. This mix of bullish and bearish sentiments provides investors with valuable insights to consider when evaluating Lam Research‘s prospects.
A look at Lam Research Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
An analysis of Lam Research Corporation utilizing the Smartkarma Smart Scores reveals a mixed long-term outlook. With a Growth score of 3 indicating moderate growth potential and a Resilience score of 4 showcasing strong stability, Lam Research seems well-positioned for the future. The company’s Momentum score of 5 suggests a positive trend in stock performance. However, the Value and Dividend scores both at 2 each may signal that the stock is currently not undervalued nor attractive for dividend investors.
Lam Research Corporation, a leading manufacturer of semiconductor processing equipment for integrated circuits, appears to have a solid foundation with its global reach and innovative products. While aspects like growth and resilience show promise, investors may want to consider other factors like value and dividends before making investment decisions in the company.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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