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

·3 min read

Lam Research Corporation LRCX is scheduled to report fiscal fourth-quarter 2021 results on Jul 28.

For the fiscal fourth quarter, the company expects revenues to be $4 billion (+/- $250 million). The Zacks Consensus Estimate for sales is pegged at $4 billion, indicating growth of 43.5% from the year-ago reported value.

Further, it anticipates non-GAAP earnings per share of $7.50 (+/- 50 cents) for fiscal fourth-quarter 2021. The consensus mark for earnings per share is pegged at $7.53, indicating a 57.5% rise from the previous-year reported figure.

It surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 11.14%.

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’s suite of selective etch products is expected to have aided the to-be-reported quarter’s results.

In addition, growing usage of DRAM and NAND in consumer products including wearables is anticipated to have aided growth of Lam Research’s memory segment during the quarter under review.

Further, strengthening Foundry-Logic spending including leading-edge nodes is expected to have remained a major tailwind for the company.

Also, growing proliferation of NAND in 5G migration, video and new game consoles is expected to have favored the underlined quarter results.

Further, increasing adoption of the Sense.i platform is likely to have benefited the company’s performance in the fiscal fourth-quarter.

Growing work and learn from home trends amid the coronavirus pandemic have been driving the adoption of artificial intelligence, 5G, and Internet of things technologies, which in turn has been creating demand for semiconductor devices. This might have been a major positive for Lam Research in the to-be-reported quarter.

Further, increasing complexity of multi-stack scaling might have bolstered demand for the company’s products during the soon-to-be-reported quarter.

Additionally, solid momentum across electronic categories including PCs, storage and networking might have contributed well to overall top-line growth in the underlined quarter.

Also, persistent strength in the customer support business group is likely to have been a tailwind in the quarter under review.

Yet, uncertainties due to the coronavirus pandemic might have remained concerns. High freight and logistic costs as a result of the ongoing pandemic are likely to get reflected in the fiscal fourth-quarter results.

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.

It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.

Stocks to Consider

Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.

Carrier Global Corporation CARR has an Earnings ESP of +1.45% and a Zacks Rank of 2, at present.

Fortinet FTNT has an Earnings ESP of +2.11% and a Zacks Rank of 2, at present.

MettlerToledo International MTD has an Earnings ESP of +1.05% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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