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Lam Research Corporation (LRCX), headquartered in Fremont, California, is a global leader in the design and manufacturing of semiconductor processing equipment. With a market cap of $104.25 billion, Lam Research provides innovative solutions to the world's top chipmakers, enabling advancements in electronics, computing, and communication technologies. The company is set to announce its Q1 earnings on Wednesday, Oct. 16.
Ahead of the event, analysts expect LRCX to report a profit of $8 per share, up 16.8% from $6.85 in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in its last four quarterly reports.
Its adjusted earnings of $8.14 per share for the last quarter surpassed the consensus estimate by 8.2%. Lam Research's quarterly outperformance was driven by solid demand for its semiconductor processing equipment and effective cost management.
For fiscal 2024, analysts expect LRCX to report EPS of $35.20, up 17.6% from $29.94 in fiscal 2023.
LRCX stock is up 3.9% on a YTD basis, significantly underperforming the broader S&P 500 Index's ($SPX) 19.7% gains and the Technology Select Sector SPDR Fund's (XLK) 15.3% returns over the same time frame.
LRCX reported Q4 earnings results and Q1 revenue forecast on Jul. 31. The company reported adjusted revenue of $3.87 billion, which topped forecasts of $3.81 billion. The company expects first-quarter revenue between $3.75 billion and $4.35 billion. LRCX saw its shares dip 9.9% the following day due to analysts' concerns over a delayed NAND spending recovery, pushed from late 2024 to early 2025. Additionally, geopolitical risks affecting Chinese sales and reduced-price targets from analysts further contributed to the stock's decline.
The consensus opinion on LRCX stock is moderately bullish, with an overall “Moderate Buy” rating. Of 27 analysts covering the stock, 16 advise a “Strong Buy” rating, two suggest “Moderate Buy,” and nine suggest a “Hold.” LRCX's average analyst price target is $1,036.92, indicating a potential upside of 27.4% from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
