It's Showtime for Lam Research
Lam Research (NAS: LRCX) is expected to report Q2 earnings around Jan. 22. 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 46.0% and EPS will grow 32.4%.
The average estimate for revenue is $852.4 million. On the bottom line, the average EPS estimate is $0.45.
Revenue details
Last quarter, Lam Research reported revenue of $906.9 million. GAAP reported sales were 33% higher than the prior-year quarter's $680.4 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 $0.53. GAAP EPS of $0.02 for Q1 were 97% lower than the prior-year quarter's $0.58 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%, about the same as the prior-year quarter. Operating margin was 6.7%, 820 basis points worse than the prior-year quarter. Net margin was 0.3%, 1,030 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $3.61 billion. The average EPS estimate is $2.22.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 339 members out of 367 rating the stock outperform, and 28 members rating it underperform. Among 114 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 106 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 $43.17.
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The article It's Showtime for Lam Research 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 position in any of the stocks mentioned. 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.
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