Lam Research Prepares for Earnings Release Amidst Mixed Market Signals
Lam Research Corporation (LRCX), valued at $93.2 billion, stands at the forefront of the semiconductor equipment industry. Based in Fremont, California, this company specializes in wafer fabrication equipment and services crucial for producing high-performing electronic devices. Investors are eagerly awaiting the announcement of the company’s fiscal Q2 2025 earnings, set for Wednesday, January 22.
Strong Earnings Anticipated
Leading up to this earnings release, analysts forecast that Lam will report a profit of $0.87 per share. This figure represents a 16% increase from the $0.75 per share reported during the same quarter last year. Notably, Lam Research has consistently exceeded Wall Street expectations over the past year, including a remarkable 7.5% beat in Q1 relative to consensus EPS estimates.
Future Growth Projections
Looking ahead to fiscal 2025, estimates suggest that LRCX may achieve an EPS of $3.50, which marks a 17.1% increase from $2.99 in fiscal 2024. Furthermore, EPS is projected to grow by 12.6% year-over-year, reaching $3.94 in fiscal 2026.
Stock Performance Overview
Over the past 52 weeks, Lam Research shares have declined by 3.3%. This underperformance sharply contrasts with the S&P 500 Index’s ($SPX) impressive 23.7% increase and the Technology Select Sector SPDR Fund’s (XLK) 23.8% return during the same period.
Recent Earnings Update
Lam Research’s stock saw a 5.1% increase following its Q1 2025 earnings release on October 23. The company reported better-than-expected earnings at $0.86 per share alongside revenue of $4.2 billion, surpassing consensus estimates. This success was driven by a 7.6% sequential revenue increase in both the Customer Support Business Group and the System business. For Q2, Lam projected $4.3 billion in revenue and an adjusted EPS of $0.87, which also exceeded analyst expectations and showed a positive outlook on continued demand for semiconductor manufacturing equipment.
However, the stock experienced a 5.3% drop on December 19, attributed to a disappointing forecast from Micron Technology (MU). Micron’s outlook revealed a slowdown in demand within the consumer PC and smartphone markets, as well as cuts in their capital expenditures for NAND manufacturing. Given Lam’s leading position in NAND equipment, this news was particularly impactful.
Analysts’ Ratings
When it comes to analyst opinions, there is a cautiously optimistic consensus regarding Lam Research’s stock, currently rated as a “Moderate Buy.” Of the 29 analysts covering LRCX, 16 recommend a “Strong Buy,” two advocate for a “Moderate Buy,” while 11 suggest a “Hold” rating. Presently, the stock trades below its average price target of $93.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here. More news from Barchart
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
