Lam Research (NASDAQ:LRCX) Posts Earnings Results, Beats Expectations By $0.02 EPS

by · The Cerbat Gem

Lam Research (NASDAQ:LRCX – Get Free Report) released its earnings results on Wednesday. The semiconductor company reported $2.20 EPS for the quarter, beating the consensus estimate of $2.18 by $0.02, Zacks reports. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The company had revenue of $8.22 billion for the quarter, compared to analyst estimates of $8.14 billion.

Lam Research Trading Down 1.0%

LRCX stock traded down $2.64 during trading on Wednesday, hitting $260.81. The company had a trading volume of 15,716,544 shares, compared to its average volume of 10,685,565. The company has a quick ratio of 1.91, a current ratio of 2.63 and a debt-to-equity ratio of 0.30. The firm has a market capitalization of $326.38 billion, a P/E ratio of 45.28, a PEG ratio of 1.08 and a beta of 1.85. The company has a 50 day simple moving average of $307.38 and a 200-day simple moving average of $309.50. Lam Research has a 52-week low of $135.50 and a 52-week high of $438.50.

Lam Research Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 14th. Investors of record on Wednesday, September 23rd were paid a dividend of $0.33 per share. The ex-dividend date of this dividend was Wednesday, September 23rd. This represents a $1.32 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from Lam Research’s previous quarterly dividend of $0.26. Lam Research’s dividend payout ratio is 22.92%.

Analyst Ratings Changes

Several research analysts have recently issued reports on LRCX shares. Bank of America raised their target price on shares of Lam Research from $330.00 to $480.00 and gave the stock a “buy” rating in a report on Tuesday, June 23rd. Needham & Company LLC reissued a “buy” rating and issued a $390.00 price target on shares of Lam Research in a research note on Thursday, July 30th. TD Cowen restated a “buy” rating and set a $400.00 target price (up from $340.00) on shares of Lam Research in a report on Thursday, July 9th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $375.00 target price on shares of Lam Research in a research note on Monday. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $385.00 price target (up from $367.00) on shares of Lam Research in a report on Monday, October 5th. One investment analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $365.07.

Get Our Latest Report on Lam Research

Insider Buying and Selling

In related news, insider Ava Harter sold 5,000 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $302.46, for a total value of $1,512,300.00. Following the completion of the transaction, the insider owned 42,462 shares of the company’s stock, valued at $12,843,056.52. The trade was a 10.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bethany Mayer sold 9,557 shares of the stock in a transaction 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 sale, the director directly owned 20,995 shares in the company, valued at $6,607,966.30. This trade represents a 31.28% decrease in their position. The SEC filing for this sale provides additional information. 0.31% of the stock is currently owned by company insiders.

Lam Research News Roundup

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

  • Positive Sentiment: Lam Research reported fiscal first-quarter EPS of $2.20, topping the consensus estimate of $2.18, while revenue of $8.22 billion exceeded expectations of $8.14 billion. The company also posted a 31.27% net margin and 67.60% return on equity. MarketBeat earnings report
  • Positive Sentiment: The results reinforce continued demand for Lam’s wafer-fabrication equipment, particularly from artificial-intelligence and advanced-memory production. Analysts had expected a beat based on the company’s strong earnings-surprise history and management’s earlier comments that demand remained healthy. Barchart earnings preview
  • Neutral Sentiment: Investor attention is now shifting to management’s outlook for fiscal 2027 capital spending, order momentum and the sustainability of AI-related equipment demand. Lam’s shares had rallied sharply year to date, leaving a high valuation and limited room for an earnings surprise that merely meets expectations.
  • Negative Sentiment: The earnings beat was modest, so it did not clearly exceed the high bar implied by the stock’s prior rally. Reports characterized the initial reaction as a decline after the company surpassed estimates on both revenue and earnings. Benzinga earnings reaction
  • Negative Sentiment: Broader weakness in chip-equipment stocks and pre-earnings risk reduction added selling pressure. Evercore also reduced its price target ahead of the report, while concerns remain that 2027 semiconductor capital spending may not keep pace with AI-driven expectations. Yahoo Finance report on Evercore target cut

Lam Research Company Profile

(Get Free Report)

Lam Research Corporation (NASDAQ:LRCX) is a semiconductor equipment company that develops and manufactures systems used to fabricate integrated circuits. Its technologies support key stages of wafer processing, helping semiconductor manufacturers create the increasingly complex structures found in memory, logic and other types of chips.

The company’s product portfolio includes etch systems, which selectively remove materials from wafers; deposition systems, which apply thin films; and cleaning solutions used to remove contaminants and residue during manufacturing.

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