Lam Research (NASDAQ:LRCX) Releases Earnings Results, Beats Expectations By $0.13 EPS

Key Points

• Lam Research beat quarterly expectations: The semiconductor equipment maker reported earnings of $1.82 per share, $0.13 above consensus, while revenue of $6.72 billion also exceeded estimates.
• Shares fell 6.4% despite the earnings beat, trading at $252.35 amid broader semiconductor-market weakness and elevated investor expectations.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $363.37; Lam Research also declared a quarterly dividend of $0.26 per share.

Lam Research (NASDAQ:LRCX - Get Free Report) announced its quarterly earnings data on Wednesday. The semiconductor company reported $1.82 earnings per share for the quarter, beating the consensus estimate of $1.69 by $0.13, FiscalAI reports. Lam Research had a net margin of 30.94% and a return on equity of 66.21%. The business had revenue of $6.72 billion for the quarter, compared to analyst estimates of $6.66 billion.

Lam Research Stock Down 6.4%

Shares of Lam Research stock traded down $17.26 on Wednesday, hitting $252.35. The company had a trading volume of 15,366,353 shares, compared to its average volume of 11,323,808. The stock has a 50-day moving average of $341.94 and a 200-day moving average of $275.43. The company has a debt-to-equity ratio of 0.35, a current ratio of 2.54 and a quick ratio of 1.77. Lam Research has a twelve month low of $90.93 and a twelve month high of $438.50. The firm has a market capitalization of $315.58 billion, a P/E ratio of 47.61, a P/E/G ratio of 1.73 and a beta of 1.80.

Lam Research Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 8th. Stockholders of record on Wednesday, June 17th were issued a $0.26 dividend. This represents a $1.04 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Wednesday, June 17th. Lam Research's dividend payout ratio is 19.62%.

Analysts Set New Price Targets

Several analysts have commented on LRCX shares. Erste Group Bank cut shares of Lam Research from a "buy" rating to a "hold" rating in a research report on Thursday, April 2nd. Wall Street Zen lowered Lam Research from a "buy" rating to a "hold" rating in a research report on Sunday, May 10th. JPMorgan Chase & Co. lifted their price objective on Lam Research from $300.00 to $315.00 and gave the stock an "overweight" rating in a research note on Thursday, April 23rd. Susquehanna reiterated a "positive" rating and issued a $475.00 price objective (up from $385.00) on shares of Lam Research in a report on Tuesday, June 30th. Finally, B. Riley Financial raised their target price on Lam Research from $350.00 to $375.00 and gave the stock a "buy" rating in a report on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Lam Research currently has an average rating of "Moderate Buy" and a consensus target price of $363.37.

Lam Research News Summary

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: AI and memory demand remain key growth drivers. Recent investor commentary highlighted continued spending on AI data centers, memory and semiconductor capacity—areas that support demand for Lam Research’s wafer-fabrication equipment. Lam Research Rose on AI Data Center and Memory Spending
• Positive Sentiment: Strong semiconductor capital spending has supported the stock. Fund commentary pointed to Lam Research’s exposure to cyclical semiconductor, memory and optical-equipment spending, particularly amid the AI investment boom. Lam Research Corporation Rose on Strong Semiconductor Capital Spending
• Neutral Sentiment: Investors are focused on the fiscal fourth-quarter report due after the market closes on July 29. Lam Research previously reported $5.84 billion in fiscal third-quarter revenue and record non-GAAP earnings per share of $1.47, which exceeded estimates by 8.1%. The new report and management’s outlook will be important tests for the stock’s elevated expectations. Lam Research Earnings Preview
• Negative Sentiment: Broader market weakness is pressuring semiconductor stocks. U.S. equity indexes declined ahead of a Federal Reserve briefing and major technology earnings, while geopolitical concerns involving Iran added to investor caution. This risk-off environment likely contributed to selling in LRCX ahead of its earnings release. US Equity Indexes Slide Ahead of Fed Briefing and Big Tech Results

Insider Buying and Selling

In related news, Director Abhijit Y. Talwalkar sold 18,282 shares of the business's stock in a transaction on Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the sale, the director directly owned 87,142 shares of the company's stock, valued at approximately $29,192,570. The trade was a 17.34% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Eric Brandt sold 54,500 shares of the company's stock in a transaction on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total transaction of $19,118,600.00. Following the completion of the transaction, the director directly owned 199,205 shares of the company's stock, valued at approximately $69,881,114. The trade was a 21.48% decrease in their ownership of the stock. 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 a total of 98,611 shares of company stock worth $32,250,190 over the last ninety days. Company insiders own 0.31% of the company's stock.

Institutional Investors Weigh In On Lam Research

Hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp lifted its stake in Lam Research by 0.4% in the 3rd quarter. State Street Corp now owns 59,817,352 shares of the semiconductor company's stock valued at $8,024,684,000 after acquiring an additional 265,805 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in shares of Lam Research by 352.2% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,695,210 shares of the semiconductor company's stock valued at $2,344,347,000 after purchasing an additional 10,666,540 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of Lam Research by 16.4% in the fourth quarter. First Trust Advisors LP now owns 5,599,798 shares of the semiconductor company's stock valued at $958,573,000 after purchasing an additional 789,884 shares during the last quarter. Rafferty Asset Management LLC lifted its position in shares of Lam Research by 32.4% in the second quarter. Rafferty Asset Management LLC now owns 4,754,011 shares of the semiconductor company's stock worth $462,755,000 after purchasing an additional 1,163,546 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its position in shares of Lam Research by 4.1% in the second quarter. Alliancebernstein L.P. now owns 3,740,029 shares of the semiconductor company's stock worth $364,054,000 after purchasing an additional 146,520 shares in the last quarter. Institutional investors and hedge funds own 84.61% of the company's stock.

About Lam Research

Lam Research Corporation NASDAQ: LRCX is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam's product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.

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