Lam Research Corporation Up 1.9% To $497.68 After Earnings Beat

Lam Research Corporation (LRCX) beat out earnings estimates for Q2 2023 this afternoon.

Analyst expectations for Lam Research Corporation earnings per share (EPS) were at $9.96, with the company surpassing those estimates with a reported EPS of $10.71, leading to a positive surprise of $0.75 per share (8%). Lam Research Corporation's earnings rose 26% year-over-year as the firm reported an EPS of $8.53 in its year-ago quarter. The positive annual growth shows the Technology company is performing well amid recent economic conditions.

Consensus analyst estimates were at $5.1 billion. The Technology company managed to surpass those expectations for its second quarter with revenue of $5.3 billion, a positive revenue surprise of $198 million (4%). The firm managed 25% growth year-over-year due to Lam Research Corporation reporting quarterly revenue of $4.2 billion in its year-ago quarter. Lam Research Corporation achieved a higher earnings growth rate than revenue, signaling that the business has improved its profit margin.

The stock is up 1.9% to $497.68 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

Wall Street Analysts had an average rating of Buy on the stock prior to the report.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 61. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Lam Research manufactures equipment used to fabricate semiconductors. The firm is focused on the etch, deposition, and clean markets, which are key steps in the semiconductor manufacturing process, especially for 3D NAND flash storage, advanced DRAM, and leading-edge logic/foundry chipmakers. Lam's flagship Kiyo, Vector, and Sabre products are sold in all major geographies to key customers such as Samsung Electronics, Micron, Intel, SK Hynix, and Taiwan Semiconductor Manufacturing.