Simply unbelievable! You cannot perform much better than Lam did; and no analyst had predicted what they gave for earnings or for guidance.....and still we get "Sells"....I guess higher than expected guidance doesn't mean anything anymore!
Ahead of the Bell: Lam Research
Thursday October 12, 8:20 am ET
Lam Research's 3rd-Quarter Profit Triples; Analyst Discouraged by Shipment Guidance
NEW YORK (AP) -- Semiconductor equipment maker Lam Research Corp. reported a third-quarter profit that more than tripled and beat Wall Street expectations, but one analyst wondered whether the momentum could last.
Late Wednesday, Lam reported a sharp rise in its quarterly profit, as new orders rose 13 percent, fueling an 88 percent total rise in revenue.
Bank of America analyst Mark F. FitzGerald called the September quarter "picture perfect," but questioned whether the results were sustainable. FitzGerald was discouraged by a sharp deceleration in December shipment guidance of 4 percent to 5 percent.
"Changes in shipments schedules are historically the first sign of a crack in fundamentals," FitzGerald wrote in a client note.
Citigroup analyst Timothy Arcuri maintained a "Sell" rating on the stock, saying the quality of the earnings was poor since lower taxes and higher other income helped results. Arcuri said that excluding these items, the company's earnings per share matched his estimates.
Arcuri was also puzzled by $640 million in shipments that missed the midpoint of the company's guidance by 4 percent.
"While we don't want to make a big deal out of a shortfall this small, it is somewhat odd that shipments would miss guidance when orders were significantly better than guidance and our checks through the quarter suggested more pull-ins than pushouts," Arcuri said.
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From last night:
Lam Research sees 2nd qtr EPS of $1.07-$1.11
Wed Oct 11, 2006 5:48pm ET
(Corrects headline to show earnings per share figures)
SAN FRANCISCO, Oct 11 (Reuters) - Lam Research Corp. (LCRX.O: Quote, Profile, Research), a supplier of tools for making microchips, expects second-quarter earnings per share to be between $1.07 and $1.11, Chief Executive Stephen Newberry said on Wednesday.
Lam revenue would be between $605 million and $625 million, with a gross margin of about 51 percent and operating margin of more than 30 percent, Newberry told a conference call.
Wall Street had been looking for Lam to show second-quarter earnings per share of $1.04 on revenue of $600 million, according to Reuters Estimates. |
