Lam Research sales come up short of expectations, stock retreats after huge day
Published: April 22, 2020 at 4:18 p.m. ET
By Jeremy C. Owens
Lam Research Corp. LRCX, +11.55% shares pulled back from big gains in the regular session during extended trading Wednesday, after the chip-equipment company's earnings showed sales came in below the lowered expectations of Wall Street. Lam reported fiscal third-quarter earnings of $575 million, or $3.88 a share, on sales of $2.5 billion, up from $2.44 billion a year ago. After adjusting for amortization and other effects, the company reported earnings of $3.98 a share, up from $3.70 a share a year ago. Analysts on average expected earnings of $3.90 a share on revenue of $2.59 billion, according to FactSet, down from expectations of $4.56 a share on sales of $2.8 billion as of the end of February. Lam had guided for revenue of $2.6 billion to $3 billion, but pulled guidance on March 17 due to the spread of COVID-19. "Extraordinary efforts by Lam's global teams helped to mitigate the operational impact of the COVID-19 pandemic, resulting in solid financial performance in the March quarter," Chief Executive Tim Archer said in Wednesday's announcement. "While there is limited visibility to near-term macroeconomic conditions and industry supply chain recovery, customer demand for our equipment remains strong." Shares declined more than 3% in after-hours trading Wednesday, after roaring 11.6% higher in the regular session on a bullish day for chip stocks.
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Lam's bid-ask is currently $260-261.75. Pretty wide, to say the least. |
