Semiconductor equipment supplier Lam Research late Wednesday handily beat expectations for its fiscal third quarter and guided higher than views for the current period. But LRCX stock wavered in extended trading.
The Fremont, Calif.-based company earned an adjusted $7.79 a share on sales of $3.79 billion in the quarter ended March 31. Analysts polled by FactSet had predicted earnings of $7.30 a share on sales of $3.72 billion. On a year-over-year basis, Lam earnings rose 11% while sales dipped 2%.
Its March-quarter results marked a return to earnings growth for Lam after four straight quarters of declines. However, sales dropped for the fifth consecutive quarter on a year-over-year basis.
For the current quarter, Lam predicted adjusted earnings of $7.50 a share on sales of $3.8 billion. Wall Street was modeling earnings of $7.30 a share on sales of $3.77 billion in the fiscal fourth quarter. In the year-earlier period, Lam earned an adjusted $5.98 a share on sales of $3.21 billion.
LRCX Stock Is In Flat Base
In after-hours trading on the stock market today, LRCX stock alternated between gains and losses. The stock was last down more than 3% at 851.01. During the regular session Wednesday, LRCX stock dipped 0.3% to close at 884.89.
"With solid revenue and earnings-per-share performance in the March quarter, Lam is off to a strong start in calendar 2024," Chief Executive Tim Archer said in a news release.
He added, "As our customers address the challenges in scaling semiconductors to meet the power and speed requirements for driving AI transformation, Lam is strengthening its leadership and is well-positioned for the significant opportunities ahead."
LRCX stock is in a flat base with a buy point of 1,007.39, according to IBD MarketSurge charts. However, in a negative sign, Lam Research is trading well below its 50-day moving average line.
Last week, industry peer ASML posted mixed first-quarter results and offered guidance below views. ASML stock tumbled after its earnings report.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
