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Lam Research (LRCX) Q4 Earnings Preview: What You Should Know Beyond the Headline Estimates

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The upcoming report from Lam Research (LRCX - Free Report) is expected to reveal quarterly earnings of $1.20 per share, indicating an increase of 48.2% compared to the year-ago period. Analysts forecast revenues of $4.99 billion, representing an increase of 28.9% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.7% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.

Given this perspective, it's time to examine the average forecasts of specific Lam Research metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts expect 'Revenue- Customer support-related revenue and other' to come in at $1.76 billion. The estimate suggests a change of +3.4% year over year.

Based on the collective assessment of analysts, 'Revenue- Systems' should arrive at $3.22 billion. The estimate suggests a change of +48.5% year over year.

The consensus estimate for 'Leading- and non-leading-edge equipment and upgrade Revenue - Memory' stands at 43.0%. Compared to the present estimate, the company reported 36.0% in the same quarter last year.

The collective assessment of analysts points to an estimated 'Leading- and non-leading-edge equipment and upgrade Revenue - Logic/integrated device manufacturing' of 9.0%. The estimate is in contrast to the year-ago figure of 21.0%.

The average prediction of analysts places 'Leading- and non-leading-edge equipment and upgrade Revenue - Foundry' at 48.1%. Compared to the present estimate, the company reported 43.0% in the same quarter last year.

View all Key Company Metrics for Lam Research here>>>

Over the past month, Lam Research shares have recorded returns of +1% versus the Zacks S&P 500 composite's +4.6% change. Based on its Zacks Rank #2 (Buy), LRCX will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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