- Lam Research‘s adjusted earnings per share (EPS) for the first quarter stood at $8.60, significantly higher than the previous year’s $6.85 and exceeded estimates by 81 cents.
- Total revenue increased by 20% year-over-year to $4.17 billion, surpassing the estimated $4.06 billion.
- Systems revenue rose 16% from the previous year to $2.39 billion, slightly below the forecasted $2.45 billion.
- Customer support-related revenue and other revenues increased by 25% year-over-year, totaling $1.78 billion, outperforming the estimate of $1.6 billion.
- The adjusted gross margin improved to 48.2%, up from 47.9% the previous year, beating the projected margin of 47.1%.
- The adjusted operating margin also saw an improvement, reaching 30.9%, compared to 30.1% last year and an estimate of 29.6%.
- Capital expenditure increased to $110.6 million from $77.0 million last year, surpassing the estimated $106.4 million.
- In post-market trading, Lam Research shares rose by 3.2% to $75.17, with 29,944 shares changing hands.
- Analyst consensus includes 22 buy ratings and 11 hold ratings, with no sell recommendations.
Lam Research on Smartkarma
Analyst coverage of Lam Research on Smartkarma provides a mixed outlook on the company’s performance. Baptista Research, in their report “Lam Research Corporation: How Are They Benefitting From Advanced Memory Technologies? – Major Drivers,” highlighted the solid performance of Lam Research in the June 2024 quarter, with revenue exceeding expectations. The company’s Customer Support Business Group showed a significant increase in revenue, driven by Reliant systems and spare parts sales. Additionally, Lam Research achieved a key milestone in its Malaysian factory, indicating progress towards long-term cost reduction goals through a more globalized manufacturing footprint.
On the other hand, William Keating‘s report “LRCX. Mounting Tailwinds Bode Well For 2025 & Beyond” presented a more cautious view, suggesting that flat revenues in the first quarter of 2024 and the lack of a full-year outlook could pose challenges. Keating mentioned upcoming technology transitions as potential growth drivers for 2025 and beyond, despite the current revenue situation. Baptista Research‘s second report “Lam Research Corporation: NAND Market Recovery & Critical Opportunities That Lie Ahead! – Major Drivers” also highlighted the company’s strong start in 2024, with Q1 earnings surpassing expectations, but acknowledged ongoing risks and uncertainties in the business environment.
A look at Lam Research Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.6 |
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
Analysts using the Smartkarma Smart Scores to assess Lam Research‘s long-term outlook have identified key strengths in the company. With a resilience score of 4, Lam Research is seen as highly capable of weathering market fluctuations and disruptions, showcasing stability and adaptability. Additionally, the growth score of 3 indicates that the company is positioned for expansion and development in the semiconductor industry, showing promise for future advancements.
Although the Value and Momentum scores are more moderate at 2, the overall outlook for Lam Research appears positive. The company’s focus on manufacturing, marketing, and servicing semiconductor processing equipment globally underscores its crucial role in the integrated circuit sector. Lam Research‘s ability to innovate and meet the changing demands of the industry bodes well for its long-term prospects.
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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