What Does Wall Street See for Lam Research's Q1?

Before you go, we thought you'd like these...
Before you go close icon

Lam Research (NAS: LRCX) is expected to report Q1 earnings around Oct. 16. 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 grow 32.8% and EPS will compress -34.9%.

The average estimate for revenue is $903.6 million. On the bottom line, the average EPS estimate is $0.41.


Revenue details
Last quarter, Lam Research booked revenue of $741.8 million. GAAP reported sales were 1.4% lower than the prior-year quarter's $752.0 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 $0.60. GAAP EPS of $0.13 for Q4 were 87% lower than the prior-year quarter's $1.01 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 40.2%, 480 basis points worse than the prior-year quarter. Operating margin was 10.5%, 1,060 basis points worse than the prior-year quarter. Net margin was 2.4%, 1,430 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.87 billion. The average EPS estimate is $2.45.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 344 members out of 371 rating the stock outperform, and 27 members rating it underperform. Among 105 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 96 give Lam Research a green thumbs-up, and nine 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 $48.12.

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.

The article What Does Wall Street See for Lam Research's Q1? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners