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Lam Research (LRCX) to Post Q3 Earnings: What's in the Cards?

Lam Research Corporation LRCX is scheduled to report third-quarter fiscal 2024 results on Apr 24.

For the fiscal third quarter, the company expects revenues of $3.7 billion (+/- $300 million). The Zacks Consensus Estimate for revenues is pegged at $3.7 billion, indicating a decline of 4.3% from the year-ago reported figure.

The company anticipates non-GAAP earnings per share of $7.25 (+/- 75 cents) for third-quarter fiscal 2024. The consensus mark for earnings per share is pegged at $7.23, indicating 3.4% growth from the prior year’s reported figure. The estimate has been unchanged over the past 30 days.

Lam Research surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 11.3%.

Lam Research Corporation Price and EPS Surprise

 

Lam Research Corporation Price and EPS Surprise
Lam Research Corporation Price and EPS Surprise

Lam Research Corporation price-eps-surprise | Lam Research Corporation Quote

Key Factors to Consider

LRCX’s proper execution, expanding and diversifying global footprints, and growing installed base are likely to have been positives.

The impacts of the company’s technological advancements, especially with AI, are likely to get reflected in the upcoming results.

Strength in 3D DRAM and advanced packaging are anticipated to have been a tailwind.

Improving DRAM spending, driven by HBM-related demand, is expected to have benefited Lam Research in the quarter under review.

Growing etch and deposition intensity, owing to increasing technology inflections in 3D architectures, is likely to have been a positive.

Technology upgrades are anticipated to have boosted NAND spending. This, in turn, is expected to have been a plus.

The growing proliferation of 5G, artificial intelligence and the Internet of Things is likely to have continued bolstering the adoption rate of the company’s advanced semiconductor and memory solutions in the fiscal third quarter.

All these factors are expected to have aided growth in the system revenues during the quarter under review.

The Zacks Consensus Estimate for system revenues is pegged at $2.268 billion, indicating a growth of 0.5% from the year-ago quarter’s actual.

However, Lam Research is expected to have continued suffering from sluggish memory spending. Macroeconomic challenges and geo-political tensions are anticipated to have acted as headwinds for the company in the quarter under review.

What Our Model Says

Our proven model predicts an earnings beat for Lam Research this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Lam Research currently has an Earnings ESP of +0.26%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

LCRX carries a Zacks Rank #3 at present.

Stocks to Consider

Here are some companies that, per our model, have the right combination of elements to post an earnings beat in the soon-to-be-reported quarterly results.

AZZ AZZ has an Earnings ESP of +7.14% and it carries a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

AZZ is scheduled to release fourth-quarter fiscal 2024 results on Apr 22. The Zacks Consensus Estimate for AZZ’s earnings is pegged at 70 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 30 cents per share.

AptarGroup ATR has an Earnings ESP of +0.59% and a Zacks Rank #2 at present.

AptarGroup is set to announce first-quarter 2024 results on Apr 25. The Zacks Consensus Estimate for ATR’s earnings is pinned at $1.13 per share, indicating growth of 19% from the year-ago quarter’s reported number.

Cardinal Health CAH has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.

CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.96 per share, indicating growth of 12.6% from the year-ago quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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