The 10-second takeaway
For the quarter ended June 30 (Q4), Lam Research met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Gross margins grew, operating margins shrank, net margins grew.
Lam Research reported revenue of $986.2 million. The 14 analysts polled by S&P Capital IQ expected a top line of $981.9 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $741.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.80. The 17 earnings estimates compiled by S&P Capital IQ anticipated $0.71 per share. Non-GAAP EPS of $0.80 for Q4 were 33% higher than the prior-year quarter's $0.60 per share. GAAP EPS of $0.50 for Q4 were 285% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 42.0%, 180 basis points better than the prior-year quarter. Operating margin was 8.9%, 160 basis points worse than the prior-year quarter. Net margin was 8.7%, 630 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $0.82.
Next year's average estimate for revenue is $4.36 billion. The average EPS estimate is $3.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 340 members out of 367 rating the stock outperform, and 27 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Lam Research a green thumbs-up, and seven 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 $53.71.
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