Lam Research Shares Plunged: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Lam Research (NAS: LRCX) are plunging today by as much as 11% after the company reported soft quarterly earnings last night.

So what: Revenue for the quarter stacked up to $680.4 million with earnings per share of $0.58. The company beat on revenue but fell short on net income, as the consensus estimates called for $670.9 million in revenue and $0.65 in earnings per share.

Now what: Lam's bottom line was hurt pretty badly with net income dropping 63% year over year. The forward-looking guidance also wasn't anything to call home about. Needham & Company, who rates the stock a hold, added some comments this morning that the results "confirmed improvement of foundry/logic orders, but memory remains challenging." With the bottom line shrinking by nearly two-thirds, this stock deserves a bit of a haircut.

Interested in more info on Lam Research? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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