Please ensure Javascript is enabled for purposes of website accessibility

Will Lam Research Beat These Analyst Estimates?

By Seth Jayson - Updated Apr 10, 2017 at 1:49PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Checking expectations

Lam Research (Nasdaq: LRCX) is expected to report Q3 earnings around April 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Lam Research's revenues will expand 27.1% and EPS will decrease -28.0%.

The average estimate for revenue is $837.7 million. On the bottom line, the average EPS estimate is $0.36.

Revenue details
Last quarter, Lam Research logged revenue of $860.9 million. GAAP reported sales were 47% higher than the prior-year quarter's $584.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.45. GAAP EPS of $0.04 for Q2 were 85% lower than the prior-year quarter's $0.27 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 41.7%, 160 basis points better than the prior-year quarter. Operating margin was 5.7%, 230 basis points worse than the prior-year quarter. Net margin was 0.7%, 500 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.52 billion. The average EPS estimate is $1.97.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 341 members out of 368 rating the stock outperform, and 27 members rating it underperform. Among 108 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Lam Research a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Lam Research is outperform, with an average price target of $42.35.

Is Lam Research the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lam Research Corporation Stock Quote
Lam Research Corporation
LRCX
$483.30 (1.94%) $9.18

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.