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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 2023 results on Apr 19.

For the fiscal third quarter, the company expects revenues of $3.8 billion (+/- $300 million). The Zacks Consensus Estimate for revenues is pegged at $3.82 billion, indicating a decline of 5.9% from the year-ago reported figure.

The company anticipates non-GAAP earnings per share of $6.50 (+/- 75 cents) for third-quarter fiscal 2023. The consensus mark for earnings per share is pegged at $6.53, indicating an 11.8% fall 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 three of the trailing four quarters and missed it once, the average surprise being 9.15%.

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

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

Increasing semiconductor demand, expanding semiconductor content in end devices and rising device complexity are likely to have acted as tailwinds in the quarter under review.

The company’s robust NAND, DRAM, foundry and logic segments are expected to have continued driving top-line growth in the fiscal third quarter.

Strengthening foundry-logic spending, including leading-edge nodes, is expected to have been the key catalyst for the company.

The rising adoption of DRAM and NAND, owing to the ongoing transition to a new data-enabled economy, is expected to have been a major tailwind.

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.

Strength in ALD metals and dielectrics deposition solutions is expected to have contributed well.

However, Lam Research has been facing significant competition in all product and service categories in the semiconductor capital equipment market. The impacts of this are likely to get reflected in the upcoming results.

Imposition of export curbs on China’s chip companies and macro headwinds in consumer-focused markets are expected to have been major concerns. Risks related to foreign currency fluctuations are likely to have been other overhangs.

Supply-chain issues, inflationary pressure and output constraints are anticipated to have persisted in the quarter under review.

What Our Model Says

Our proven model does not conclusively predict 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Lam Research currently has an Earnings ESP of 0.00% and a Zacks Rank #3.

Stocks to Consider

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

Block SQ has an Earnings ESP of +5.22% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Block is set to report first-quarter 2023 results on May 4. The Zacks Consensus Estimate for SQ’s earnings is pegged at 31 cents per share, which suggests an increase of 72.2% from the prior-year reported figure.

Bruker BRKR currently has an Earnings ESP of +1.21% and a Zacks Rank of 3.

Bruker is scheduled to release first-quarter 2023 results on May 3. The Zacks Consensus Estimate for BRKR’s earnings is pegged at 55 cents per share, which suggests an increase of 12.2% from the prior-year reported figure.

Perficient PRFT has an Earnings ESP of +0.39% and is Zacks #3 Ranked at present.

Perficient is expected to release first-quarter 2023 results on May 2. The Zacks Consensus Estimate for PRFT’s earnings is pegged at $1.04 per share, which suggests an increase of 6.1% from the prior-year reported figure.

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

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