Tuesday, April 21, 2015

Lam Research (LRCX) 2015 Q1 Earnings

Lam Research Corporation (LRCX) reported earnings for the fiscal quarter ending March 29th, 2015 on April 20th, 2015. Earnings per diluted share came in at $1.40, beating consensus' estimates of of $1.30. Management was upbeat about guidance going forward despite capital spending cuts in the chip manufacturing space by semiconductor giants Intel (INTC) and Taiwan Semiconductor (TSM)

Earnings per share is up about 14% in comparison to this time last year, and management expects 4Q EPS to range between $1.39-1.53 with estimated revenues of anywhere between $1.41 billion to $1.51 billion. Lam Research believes through an assortment of chip products, it can maintain high revenues. The stock rose 9% in the market's after hours and reached $78.50 and is currently trading at about $77.90.

LRCX saw it's increase in EPS due to an increase in revenues. Margins remained relatively constant and if the company can live up to management's expectations to even higher revenues, then Q4 EPS should increase yet again. However, it is important to note that a lot of Lam's optimism is banking on an overall market decrease in 3D Nand prices that would drive demand up which would prove beneficial for Lam.

Chip manufacturer's Applied Materials (AMAT) and KLA Tencor (KLAC) also saw their share's price rise in accordance with Lam's which reflects investor's excitement for the chip manufacturer space.

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