Lam Research Corporation LRCX is scheduled to report second-quarter fiscal 2024 results on Jan 24.
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For the fiscal second quarter, the company expects revenues of $3.7 billion (+/- $300 million). The Zacks Consensus Estimate for revenues is pegged at $3.71 billion, indicating a decline of 29.7% from the year-ago reported figure.
The company anticipates non-GAAP earnings per share (EPS) of $7.00 (+/- 75 cents) for second-quarter fiscal 2024. The consensus mark for EPS is pegged at $7.05, indicating a 34.2% fall from the prior-year reported figure. The estimate has been unchanged over the past 30 days.
Lam Research surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.6%.
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation Price and EPS Surprise
Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote
Key Factors to ConsiderStrength in 3D DRAM and advanced packaging is expected to have been the key catalyst for the company.
The impact of the LCRX’s technological advancements, especially with AI, is likely to be reflected in the upcoming results.
Growing etch and deposition intensity, owing to increasing technology inflections in 3D architectures, might have been a positive.
Signs of improvement in DRAM spending on the back of HBM-related demand might have benefited Lam Research in the quarter under review.
The growing proliferation of 5G, artificial intelligence and the Internet of Things is likely to have continued to bolster the adoption rate of the company’s advanced semiconductor and memory solutions in the fiscal second quarter.
However, weakening memory spending, especially in NAND, might have been a major concern for the company during the to-be-reported quarter. This is anticipated to have negatively impacted its system revenues.
The Zacks Consensus Estimate for system revenues is pegged at $2.27 billion, indicating a decline of 36% from the year-ago quarter.
Macroeconomic uncertainties, inflationary pressure, geo-political tensions and softness in consumer-focused markets are anticipated to have acted as headwinds for the company in the quarter under review. All these factors might have impacted the performance of the Customer Support Business Group in the to-be-reported quarter.
The Zacks Consensus Estimate for Customer Support Business Group revenues is pegged at $1.44 billion, indicating a decline of 16.8% from the year-ago quarter.
Lam Research has also been facing significant competition in all product and service categories in the semiconductor capital equipment market. The impacts of this are likely to be reflected in the upcoming results. |
