Analysts Set Expectations for Lam Research FY2028 Earnings

Key Points

• Erste Group Bank raised its FY2028 earnings estimate for Lam Research to $11.68 per share from $11.43, above the current full-year consensus estimate of $9.33.
• Lam Research recently exceeded quarterly expectations, reporting $1.82 in EPS versus $1.69 expected and $6.72 billion in revenue, up 30% year over year. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $361.81.
• The company increased its quarterly dividend to $0.33 per share from $0.26, implying a $1.32 annualized payout and a 0.5% yield; institutional investors own 84.61% of outstanding shares.

Lam Research Corporation (NASDAQ:LRCX - Free Report) - Investment analysts at Erste Group Bank increased their FY2028 earnings estimates for Lam Research in a research note issued to investors on Friday, September 18th. Erste Group Bank analyst S. Lingnau now expects that the semiconductor company will post earnings of $11.68 per share for the year, up from their prior forecast of $11.43. The consensus estimate for Lam Research's current full-year earnings is $9.33 per share.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The semiconductor company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company's revenue was up 30.0% on a year-over-year basis. During the same period in the prior year, the firm earned $1.33 earnings per share. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS.

Other equities research analysts also recently issued reports about the stock. Citigroup restated a "buy" rating and set a $450.00 price objective (up from $315.00) on shares of Lam Research in a research report on Wednesday, June 17th. Bank of America boosted their price target on Lam Research from $330.00 to $480.00 and gave the company a "buy" rating in a research note on Tuesday, June 23rd. Zacks Research upgraded Lam Research from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Berenberg Bank set a $420.00 target price on shares of Lam Research in a research report on Wednesday, September 9th. Finally, Rothschild & Co Redburn raised their price target on shares of Lam Research from $305.00 to $420.00 and gave the stock a "buy" rating in a research report on Wednesday, June 17th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $361.81.

Lam Research Price Performance

Shares of LRCX opened at $288.11 on Monday. The firm has a market cap of $360.52 billion, a P/E ratio of 50.02, a price-to-earnings-growth ratio of 1.14 and a beta of 1.85. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. Lam Research has a 52 week low of $125.00 and a 52 week high of $438.50. The firm's 50-day simple moving average is $306.54 and its 200 day simple moving average is $295.40.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in LRCX. Paladin Partners LLC acquired a new stake in shares of Lam Research during the second quarter valued at about $26,000. Bravera Wealth acquired a new position in shares of Lam Research in the second quarter valued at approximately $46,000. Cedar Mountain Advisors LLC increased its stake in shares of Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock valued at $26,000 after buying an additional 85 shares during the period. Comprehensive Financial Planning Inc. PA bought a new position in Lam Research in the 2nd quarter valued at approximately $52,000. Finally, Vermillion Wealth Management Inc. bought a new position in Lam Research in the 1st quarter valued at approximately $26,000. Institutional investors own 84.61% of the company's stock.

Insiders Place Their Bets

In other news, Director Bethany Mayer sold 9,557 shares of the business's stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $314.74, for a total value of $3,007,970.18. Following the completion of the transaction, the director directly owned 20,995 shares in the company, valued at approximately $6,607,966.30. The trade was a 31.28% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Ava Harter sold 5,000 shares of the company's stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $302.46, for a total transaction of $1,512,300.00. Following the sale, the insider directly owned 42,462 shares of the company's stock, valued at approximately $12,843,056.52. This trade represents a 10.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 32,839 shares of company stock worth $10,644,740 over the last ninety days. Corporate insiders own 0.31% of the company's stock.

Lam Research Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd will be given a dividend of $0.33 per share. This is a positive change from Lam Research's previous quarterly dividend of $0.26. This represents a $1.32 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Wednesday, September 23rd. Lam Research's dividend payout ratio (DPR) is currently 18.06%.

Lam Research Company Profile

Lam Research Corporation is a semiconductor equipment company that develops and manufactures systems used in the fabrication of integrated circuits. Its equipment supports key wafer-processing steps, including deposition, etch, wafer cleaning, and related processes used to create and connect the microscopic features found on semiconductor devices.

The company serves semiconductor manufacturers producing a range of products, including memory, logic, and specialty chips. In addition to manufacturing equipment, Lam Research provides installation, maintenance, spare parts, upgrades, technical support, and other services intended to help customers operate and improve their fabrication facilities.

Founded in 1980, Lam Research is headquartered in Fremont, California, and serves customers through a global network of offices, engineering facilities, and support operations.

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