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Lam Research Q1 Earnings Beat: Can Strong Q2 Guidance Lift the Stock?
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Lam Research Corporation (LRCX - Free Report) delivered first-quarter fiscal 2025 post-split non-GAAP earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents. The figure increased 6.2% sequentially. Lam Research announced its decision of a 10-for-1 stock split on May 21, 2024. The stock split was made effective on Oct. 2, 2024, for shareholders of record at that time.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $4.17 billion surpassed the Zacks Consensus Estimate of $4.05 billion. The figure increased 7.6% quarter over quarter. The sequential growth in the top line was driven by the strong performance of the Customer Support Business Group and the rebound in the System business.
Buoyed by better-than-expected first-quarter performance, Lam Research provided strong guidance for the second quarter that exceeded the Zacks Consensus Estimate. The company’s strong quarterly performance and upbeat guidance can give a boost to LRCX’s share price, which is underperforming the Zacks Semiconductor Equipment - Wafer Fabrication industry. Shares of Lam Research have lost 7% compared with the industry’s decline of 1.2% year to date.
Lam Research Corporation Price, Consensus and EPS Surprise
Lam Research’s System revenues were $2.4 billion (57.4% of the total revenues), up 10.3% from the previous quarter. System revenues grew 16.3% year over year. The reported figure missed the Zacks Consensus Estimate of $2.52 billion.
In the Customer Support Business Group, revenues for the reported quarter were $1.78 billion (42.6% of the total revenues), up 4.3% from the previous quarter and 24.5% year over year. The figure beat the consensus mark of $1.53 billion.
LRCX’s Regions in Detail
China, Korea and Taiwan accounted for 37%, 18% and 15% of Lam Research’s total revenues, respectively, for the fiscal first quarter. Japan, Southeast Asia, the United States and Europe accounted for 7%, 6%, 12% and 5% of total revenues, respectively.
Operating Details of LRCX
The non-GAAP gross margin was 48.2%, which contracted 30 basis points (bps) from the previous quarter.
Non-GAAP operating expenses were $722 million, up 4.8% from the previous quarter. As a percentage of revenues, the figure contracted 50 bps quarter over quarter to 17.3%.
The non-GAAP operating margin was 30.9%, expanding 20 bps from the previous quarter’s 30.7%.
LRCX’s Balance Sheet & Cash Flow
As of Sept. 29, 2024, cash and cash equivalents were $6.07 billion compared with $5.85 billion as of June 30, 2024.
Cash flow from operating activities was $1.57 billion for the reported quarter, up from $862.43 million in the previous quarter.
In the reported quarter, Lam Research paid out dividends of $261 million and repurchased shares worth $1 billion.
LRCX Provides Strong Guidance
For second-quarter fiscal 2025, LRCX now expects its revenues to be $4.30 billion (+/- $300 million), up from the previous guidance of $4.05 billion (+/- $300 million). The Zacks Consensus Estimate for the same is pegged at $4.22 billion.
The non-GAAP gross margin is projected at 47% (+/-1%), whereas the non-GAAP operating margin is expected to be 30% (+/-1%).
Non-GAAP earnings per share are projected to be 87 cents (+/- 10 cents) on a diluted share count of 1.3 billion. The Zacks Consensus Estimate for the same is pinned at 84 cents per share.
LRCX’s Zacks Rank & Stocks to Consider
Lam Research currently carries a Zacks Rank #4 (Sell).
The consensus mark for CyberArk’s 2024 earnings has been revised upward by 2 cents to $2.29 per share over the past 60 days, indicating a 104.5% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 33.4%. The stock of CYBR has soared 40.8% in the year-to-date period.
The Zacks Consensus Estimate for FFIV’s fiscal 2024 earnings has been revised downward by a penny to $13.15 per share in the past seven days, suggesting a year-over-year increase of 12.4%. It has a long-term earnings growth expectation of 7.8%. Shares of FFIV have increased 31.9% in the year-to-date period.
The Zacks Consensus Estimate for Fortinet’s 2024 earnings has been revised upward by a penny to $2.01 per share in the past 60 days, indicating an increase of 23.31% on a year-over-year basis. It has a long-term earnings growth expectation of 16.3%. Shares of FTNT have jumped 37.3% in the year-to-date period.
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Lam Research Q1 Earnings Beat: Can Strong Q2 Guidance Lift the Stock?
Lam Research Corporation (LRCX - Free Report) delivered first-quarter fiscal 2025 post-split non-GAAP earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 80 cents. The figure increased 6.2% sequentially. Lam Research announced its decision of a 10-for-1 stock split on May 21, 2024. The stock split was made effective on Oct. 2, 2024, for shareholders of record at that time.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Revenues of $4.17 billion surpassed the Zacks Consensus Estimate of $4.05 billion. The figure increased 7.6% quarter over quarter. The sequential growth in the top line was driven by the strong performance of the Customer Support Business Group and the rebound in the System business.
Buoyed by better-than-expected first-quarter performance, Lam Research provided strong guidance for the second quarter that exceeded the Zacks Consensus Estimate. The company’s strong quarterly performance and upbeat guidance can give a boost to LRCX’s share price, which is underperforming the Zacks Semiconductor Equipment - Wafer Fabrication industry. Shares of Lam Research have lost 7% compared with the industry’s decline of 1.2% year to date.
Lam Research Corporation Price, Consensus and EPS Surprise
Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation Quote
LRCX’s Segment in Details
Lam Research’s System revenues were $2.4 billion (57.4% of the total revenues), up 10.3% from the previous quarter. System revenues grew 16.3% year over year. The reported figure missed the Zacks Consensus Estimate of $2.52 billion.
In the Customer Support Business Group, revenues for the reported quarter were $1.78 billion (42.6% of the total revenues), up 4.3% from the previous quarter and 24.5% year over year. The figure beat the consensus mark of $1.53 billion.
LRCX’s Regions in Detail
China, Korea and Taiwan accounted for 37%, 18% and 15% of Lam Research’s total revenues, respectively, for the fiscal first quarter. Japan, Southeast Asia, the United States and Europe accounted for 7%, 6%, 12% and 5% of total revenues, respectively.
Operating Details of LRCX
The non-GAAP gross margin was 48.2%, which contracted 30 basis points (bps) from the previous quarter.
Non-GAAP operating expenses were $722 million, up 4.8% from the previous quarter. As a percentage of revenues, the figure contracted 50 bps quarter over quarter to 17.3%.
The non-GAAP operating margin was 30.9%, expanding 20 bps from the previous quarter’s 30.7%.
LRCX’s Balance Sheet & Cash Flow
As of Sept. 29, 2024, cash and cash equivalents were $6.07 billion compared with $5.85 billion as of June 30, 2024.
Cash flow from operating activities was $1.57 billion for the reported quarter, up from $862.43 million in the previous quarter.
In the reported quarter, Lam Research paid out dividends of $261 million and repurchased shares worth $1 billion.
LRCX Provides Strong Guidance
For second-quarter fiscal 2025, LRCX now expects its revenues to be $4.30 billion (+/- $300 million), up from the previous guidance of $4.05 billion (+/- $300 million). The Zacks Consensus Estimate for the same is pegged at $4.22 billion.
The non-GAAP gross margin is projected at 47% (+/-1%), whereas the non-GAAP operating margin is expected to be 30% (+/-1%).
Non-GAAP earnings per share are projected to be 87 cents (+/- 10 cents) on a diluted share count of 1.3 billion. The Zacks Consensus Estimate for the same is pinned at 84 cents per share.
LRCX’s Zacks Rank & Stocks to Consider
Lam Research currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader technology sector are CyberArk Software (CYBR - Free Report) , F5 Inc (FFIV - Free Report) and Fortinet (FTNT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The consensus mark for CyberArk’s 2024 earnings has been revised upward by 2 cents to $2.29 per share over the past 60 days, indicating a 104.5% year-over-year increase. The long-term expected earnings growth rate for the stock stands at 33.4%. The stock of CYBR has soared 40.8% in the year-to-date period.
The Zacks Consensus Estimate for FFIV’s fiscal 2024 earnings has been revised downward by a penny to $13.15 per share in the past seven days, suggesting a year-over-year increase of 12.4%. It has a long-term earnings growth expectation of 7.8%. Shares of FFIV have increased 31.9% in the year-to-date period.
The Zacks Consensus Estimate for Fortinet’s 2024 earnings has been revised upward by a penny to $2.01 per share in the past 60 days, indicating an increase of 23.31% on a year-over-year basis. It has a long-term earnings growth expectation of 16.3%. Shares of FTNT have jumped 37.3% in the year-to-date period.