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Lam Research (LRCX) to Report Q4 Earnings: What's in Store?

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Lam Research Corporation LRCX is scheduled to report fourth-quarter fiscal 2022 results on Jul 27.

For the fiscal fourth quarter, LRCXexpects revenues to be $4.2 billion (+/- $300 million). The Zacks Consensus Estimate for sales is pegged at $4.21 billion, indicating growth of 1.5% from the year-ago fiscal quarter’s reported value.

Lam Researchanticipates non-GAAP earnings per share of $7.25 (+/- 75 cents) for fourth-quarter fiscal 2022. The consensus mark for earnings per share is pegged at $7.3, indicating a 9.8% decline from the previous-year fiscal quarter’s reported figure. Also, the consensus mark has been unchanged over the past 30 days.

LCRX’s bottom line surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same once, the average surprise being 2.51%.

Lam Research Corporation Price and EPS Surprise

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 Note

Lam Research is likely to have gained from continued strong demand for semiconductor equipment in the fiscal fourth quarter. Rising demand for semiconductor devices owing to the growing adoption of artificial intelligence, 5G and the IoT technologies might have acted as a tailwind.

The growing usage of DRAM and NAND in consumer products is expected to have driven demand for wafer fab equipment during the quarter under review.

Continuous investment in expanding products and services is expected to have remained a tailwind in the underlined quarter.

Lam Research has been winning applications across etch and deposition for all device segments. This is likely to have continued aiding its quarterly performance.

Strong momentum for atomic layer deposition (ALD) metals and dielectric solutions for leading-edge foundry/logic nodes in the deposition business might have supported the quarter under discussion.

LRCX is witnessing large contract wins in the Customer Support Business Group. This is expected to have prevailed in the fiscal fourth quarter too.

Lam Research has been performing well in China, Korea and Taiwan so far. This is likely to have remained a positive. Also, growing investment in Korea and Taiwan might have aided the quarterly performance.

However, supply-chain challenges and constant component shortages as a result of the ongoing coronavirus pandemic are likely to get reflected in the results for the fiscal fourth quarter.

Inflation-induced softness in the consumer market is expected to have remained a headwind in the to-be-reported quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Lam Research this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lam Researchhas an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Aspen Technology AZPN has an Earnings ESP of +1.40% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year fiscal period’s reported figure.

Keysight Technologies KEYS has an Earnings ESP of +1.23% and a Zacks Rank of 2 at present.

Keysight Technologies is scheduled to release third-quarter fiscal 2022 results on Aug 17. The Zacks Consensus Estimate for KEYS’ earnings is pegged at $1.79 per share, suggesting an increase of 16.2% from the prior-year fiscal quarter’s reported figure.

Advanced Micro Devices AMD has an Earnings ESP of +2.14% and a Zacks Rank #3 at present.

Advanced Micro Devices is scheduled to release second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, suggesting an increase of 63.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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