Semiconductor equipment maker Lam Research (NASDAQ:LRCX) (NASDAQ:LCRX) will be reporting earnings tomorrow after market close. Here's what investors should know.
Last quarter Lam Research reported revenues of $3.21 billion, down 30.8% year on year, beating analyst revenue expectations by 1.83%. It was a mixed quarter for the company, with an impressive beat of analysts' EPS estimates but an increase in inventory levels and decline in operating margin.
Is Lam Research buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Lam Research's revenue to decline 32.7% year on year to $3.41 billion, a further deceleration on the 17.9% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $6.12 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.
Looking at Lam Research's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. SMART's revenues decreased 27.7% year on year, missing analyst estimates by 15.6% and Micron Technology (NASDAQ:MU) reported revenue decline of 39.6% year on year, exceeding estimates by 2.15%. SMART traded down 44.5% on the results, Micron Technology was down 4.45%.
Read the full analysis of SMART's and Micron Technology's results on StockStory.
Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks down on average 1.78% over the last month. Lam Research is up 2.1% during the same time, and is heading into the earnings with with analyst price target of $698.7, compared to share price of $649.
The author has no position in any of the stocks mentioned.
