Corrected: Lam Research Q1 revenue rises on higher semiconductor demand, slightly beating estimates

Lam Research

Yesterday 21:17

Corrects headline to say revenue slightly beat estimates, not fell below

Overview
US wafer fabrication equipment supplier's Q1 revenue slightly beat analyst expectations
Adjusted EPS for Q1 beat analyst expectations
Company cites AI-driven semiconductor demand and operational execution for record results

Outlook
Lam sees Dec qtr revenue at $8.60 bln, plus or minus $400 mln
Company expects Dec qtr gross margin of 52.5% plus or minus 1%
Lam forecasts Dec qtr net income per diluted share at $2.33 plus or minus $0.15

Result Drivers
AI DEMAND - Co said higher semiconductor demand driven by AI contributed to record revenue and profit
TECHNOLOGY INVESTMENTS - Co said strategic investments in technology inflections and manufacturing capacity strengthened its ability to outgrow the wafer fabrication equipment market

Company press release: ID:nPn4k3Z1Pa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$8.22 bln
$8.15 bln (22 Analysts)
Q1 Adjusted EPS
Beat
$2.20
$2.18 (24 Analysts)
Q1 EPS
 
$2.19
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 30 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"
Wall Street's median 12-month price target for Lam Research Corporation is $380.00, about 44.2% above its October 20 closing price of $263.45
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 54 three months ago

Reuters Recommended Reads
Oct 19 - AI chip startup Tenstorrent more than doubles its valuation to $6.2 billion in funding round
Oct 20 - Switzerland's Comet Holding Q3 sales jump on AI, semiconductor demand
Oct 19 - Amazon says its AI chips will work with popular coding language, challenging Nvidia

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)