3rdPartyFeeds

Dow Drops, Tech Stocks Rally As Jobless Claims Fall; Tesla Slides, While Lam Back In Buy Range

The Dow Jones Industrial Average fell more than 100 points Thursday, as jobless claims dropped. Apple and Tesla stock traded lower in morning trade. Read More...

SmarterAnalyst

Lam Research’s 4Q Guidance Tops Estimates After 3Q Beat

Lam Research Corporation, a semiconductor company, posted better-than-expected guidance for the fiscal fourth quarter after results topped consensus estimates in fiscal 3Q. Lam Research’s (LRCX) 3Q adjusted earnings increased 24% on a sequential basis to $7.49 per share and surpassed the Street estimates of $6.60. Revenue surged 11% sequentially to $3.85 billion and outpaced analysts’ expectations of $3.69 billion. The company’s adjusted gross margin came in at 46.3%, down 30 basis points sequentially. Meanwhile, adjusted operating margin was 31.6%, up 130 basis points. Lam Research CEO Tim Archer commented, “Semiconductors are reaching new heights of strategic relevance, and Lam’s differentiated ability to meet our customers’ scaling challenges positions us well amid a strong wafer fabrication spending environment.” (See Lam Research stock analysis on TipRanks) For the fiscal fourth quarter, net revenue is expected to be between $3.75 billion and $4.25 billion, versus the consensus estimate of $3.68 billion. Adjusted EPS is forecasted to be in the range of $7.00-$8.00, versus the consensus estimate of $6.74. Following the fiscal 3Q results, Needham analyst Quinn Bolton reiterated a Hold rating. Bolton said, “Lam Research delivered strong March quarter results and guided the June quarter even higher, solidly beating the respective consensus estimates.” “While we do not want to discount its share gain potential, we believe LRCX’s overall WFE market share will remain relatively stable this year as the WFE mix is unfavorable for LRCX,” the analyst added. Lam Research shares have exploded 136% over the past year, while the stock still scores a Strong Buy consensus rating, based on 14 Buys versus 3 Holds. That’s alongside an average analyst price target of $736, which implies 14.8% upside potential to current levels. Lam Research scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Related News: Intel Earnings Preview: Here’s What To Watch For Johnson & Johnson Earnings Preview: Here’s What You Need To Know Morgan Stanley’s 1Q Results Beat Expectations As Revenues Surge; Shares Dip More recent articles from Smarter Analyst: Salesforce Aids Sonos In Digital Transformation Wall Street Roundup: Bullish & Bearish Calls Of The Day Amazon’s AWS Partners With DISH Network Thursday’s Pre-Market: Here’s What You Need To Know Before The Market Opens

Read More

Add Comment

Click here to post a comment