Lam Research Q1 revenue rises on higher semiconductor demand, but slightly falls below estimates

Lam Research

Today 21:17

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.)