Lam Research Poised For ‘Solid Start To The Year’ As 3 Analysts Discuss Q4 Print

Stock market chart of Lam Research Corporation displayed on a smartphone with the logo in the background. Lam Research reported “solid” results for its fiscal fourth quarter. IGOR GOLOVNIOV/SOPA IMAGES/LIGHTROCKET VIA GETTY IMAGES.

Shares of Lam Research Corporation (NASDAQ:NLRCX) spiked in early trading on Thursday, after the company reported upbeat quarterly results.

The report came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

• Bernstein analyst Stacy Rasgon reiterated a Market Perform rating, while lifting the price target from $500 to $550.
• KeyBanc Capital Markets analyst Steve Barger maintained a Sector Weight rating on the stock.
• Needham analyst Quinn Bolton reiterated a Hold rating on the stock.

Bernstein

“Lam Research reported “solid” results for its fiscal fourth quarter,” said Rasgon in a note. “Systems beat $1.71B v Street at $1.63B, with incremental upside from China trailing node as well as HBM memory, with CSBG revenues in-line at $1.50B,” he added.

(L-R) CEO of Intel Corporation Pat Gelsinger, CEO of Micron Sanjay Mehrotra and President and CEO of Lam Research Tim Archer testify during a hearing before Senate Committee on Commerce, Science, and Transportation at Russell Senate Office Building on Capitol Hill on March 23, 2022, in Washington, DC. Lam Research reported better-than-expected quarterly results, although sales declined by 17% sequentially. ALEX WONG/GETTY IMAGES.

“The company’s gross margins came in higher than expected, “on the back of cost savings and favorable mix,” said the analyst. “FQ124 guidance was also good with upside from domestic China spending and increasing HBM demand.”

KeyBanc Capital Markets

“With respect to the cycle, LRCX maintained a cautious tone and for CY23 sees memory down mid-40% and non-memory down ~10%,” said Barger. “Even so, LRCX discussed pockets of strength like HBM, Advanced Packaging, and China, which allowed it to increase its WFE forecast modestly to the mid-$70B level, slightly weighted to the back half.”

The analyst projected a “solid start to the year,” while added that fiscal 2024 estimates are likely to be raised.

Needham

Lam Research reported better-than-expected quarterly results, although sales declined by 17% sequentially. The company’s guidance for the fiscal first quarter was above expectations, “and implied the June quarter will be the bottom,” he added.

Lam Research raised its “2023 WFE outlook to the mid-$70bn range, driven by the strength of the China domestic and HBM markets,” the analyst wrote. “Management does not see any near term recovery in memory spending.”

LRCX Price Action: Shares of Lam Research had risen by 8.57% to $697.43 at the time of publishing Thursday.

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Edited by Priscilla Jepchumba and Judy J. Rotich