Shares of Lam Research Corp. rose in the extended session on Wednesday after the company reported better-than-expected results and provided a positive forecast.
Strong Financial Performance
Lam Research reported a net income of $802.5 million, or $5.97 per share, for the fiscal fourth quarter. This is compared to $1.21 billion, or $8.74 per share, in the same period last year. Adjusted earnings, which exclude certain items, were $5.98 per share, down from $8.83 per share in the year-ago quarter.
Revenue for the quarter declined to $3.21 billion from $4.64 billion in the previous year. However, the company's performance exceeded analysts' expectations. Analysts surveyed by FactSet had forecasted adjusted earnings of $5.07 per share on revenue of $3.13 billion.
Promising Outlook
Looking ahead, Lam Research expects adjusted earnings for the fiscal first quarter to be between $5.30 and $6.80 per share, with revenue ranging from $3.1 billion to $3.7 billion. Analysts' estimates were slightly lower, with projections of $5.56 per share on revenue of $3.3 billion.
Industry Impact
Lam Research plays a critical role in the semiconductor industry by manufacturing complex machinery used by foundries like Taiwan Semiconductor Manufacturing Co. and chip makers such as Nvidia Corp. and Apple Inc. This enables these companies to produce high-quality silicon chips. Intel Corp., on the other hand, manufactures its own silicon.
Market Performance
Year to date, Lam Research shares have seen a significant increase of 53%, outperforming the PHLX Semiconductor Index (with a 46% rally), the S&P 500 index (with a 19% gain), and the Nasdaq Composite Index (with a 35% rise).
Lam Research Corp. continues to show strength in its financial performance and outlook, positioning itself as a key player in the semiconductor industry.
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