Shares of Lam Research (LRCX -0.12%) have jumped today, up by 11% as of 12:15 p.m. EDT, after the company reported fiscal first-quarter earnings results. The semiconductor supplier beat expectations on both the top and bottom lines.
Revenue in the fiscal first quarter came in at $2.17 billion, slightly ahead of the $2.16 billion in sales that analysts were modeling for. That translated into adjusted net income of $480 million, or $3.18 per share. Analysts were expecting just $3.01 per share in adjusted profits. Adjusted gross margin declined slightly to 45.4%.
The company generated $464 million in operating cash flow and paid out $158.9 million in dividends while spending another $78.1 million on share repurchases.
"Lam delivered solid results in the September quarter, highlighted by strong profitability," CEO Tim Archer said in a statement. "Through our unwavering commitment to customer collaboration and technology innovation, Lam has laid a foundation for long-term growth and outperformance."
Looking ahead, Lam's guidance for the fiscal second quarter that ends in December calls for revenue of $2.5 billion, plus or minus $150 million. As reported under generally accepted accounting principles (GAAP), gross margin for the quarter is forecast at 44.9% and operating margin should be 26.4%. EPS is expected to be $3.71.
On an adjusted basis, gross margin is guided to 45%, operating margin is expected to come in at 27%, and earnings per share should be $3.80.