LRCX Stock: Lam Research Posts Mixed Quarterly Results

Semiconductor equipment maker Lam Research (LRCX) late Wednesday delivered December-quarter results that edged above expectations for earnings, but the company missed views on sales. It also guided lower for the current period. LRCX stock sold off in extended trading.

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Fremont, Calif.-based Lam earned an adjusted $8.53 a share on sales of $4.23 billion in its fiscal second quarter ended Dec. 26. Analysts had forecast Lam earnings of $8.52 a share on sales of $4.42 billion, according to FactSet. On a year-over-year basis, Lam earnings rose 41% while sales climbed 22%.

“Lam delivered record calendar year 2021 financial performance within a robust wafer fabrication spending environment,” Chief Executive Tim Archer said in a news release.

He added, “While supply chain conditions worsened in late December and are causing near-term impacts to our results, we expect wafer fabrication equipment investments to again increase in calendar year 2022, leading to another strong growth year for Lam.”

LRCX Stock Falls On Weak Outlook

For the current quarter, Lam expects to earn an adjusted $7.45 a share on sales of $4.25 billion. Wall Street had predicted earnings of $8.72 a share on sales of $4.49 billion.

In after-hours trading on the stock market today, LRCX stock tumbled 6%, near 561. During the regular session Wednesday, shares rose 1.4% to close at 596.67.

Other chip gear makers posting quarterly results late Wednesday included Teradyne (TER) and MKS Instruments (MKSI).

LRCX stock ranks tenth out of 32 stocks in IBD’s Semiconductor Equipment industry group, according to IBD Stock Checkup. Lam Research has an IBD Composite Rating of 92 out of 99. Teradyne stock ranks sixth and MKS Instruments ranks No. 12 in the group.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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