FREMONT – Lam Research Corporation (NASDAQ:LRCX) reported a stronger-than-expected adjusted earnings per share (EPS) for the fourth quarter, surpassing analyst projections.
The semiconductor company announced an adjusted EPS of $8.14, which was $0.56 higher than the analyst estimate of $7.58. Revenue for the quarter was in line with expectations, coming in at $3.87 billion, marginally above the consensus estimate of $3.82 billion.
The company's performance for the June 2024 quarter reflected a solid execution, particularly in its customer support business group, which contributed to the earnings surpassing the midpoint of their guidance. Despite the positive earnings results, Lam Research's stock experienced a 2.5% decline, indicating investor caution as the results were set against high expectations.
For the first quarter of 2025, Lam Research provided earnings guidance of $8.00 +/-$0.75, with the midpoint slightly below the consensus estimate of $8.02. The revenue guidance for the same period is projected to be $4.05 billion +/-$300 million, with the midpoint just above the consensus estimate of $4.03 billion.
President and CEO Tim Archer commented on the results, stating, "Lam's June quarter results came in above the midpoint of our guidance, driven by continued solid execution and growth in our customer support business group."
He also emphasized the company's strategic investments in R&D and operations to capitalize on what they anticipate to be a multi-year period of robust wafer fab equipment spending.
The slight drop in stock price post-earnings release suggests that while the company's financial performance was strong, it may have been overshadowed by already high investor expectations. Lam Research's guidance for the upcoming quarter indicates a cautious but stable outlook, with revenue projections slightly exceeding analyst predictions.
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