TLDR
- Lam Research (LRCX) stock was down 8% premarket Thursday at $239.31, after closing Wednesday at $260.81.
- Q1 revenue was $8.22 billion and non-GAAP EPS was $2.20, beating estimates of $8.13 billion and $2.18.
- December quarter guidance of $8.60 billion in revenue topped the $8.538 billion consensus.
- China made up 35% of sales, followed by Korea at 20% and Taiwan at 18%.
- A wide guidance range and an 80% rise over the past year appear to have prompted profit taking.
Lam Research (LRCX) stock fell 8% in premarket trading Thursday to $239.31. It closed Wednesday at $260.81, before the earnings report.
Lam Research Corporation, LRCX
The chip equipment maker beat Wall Street targets for its fiscal first quarter. Investors still headed for the exits.
Non-GAAP earnings were $2.20 per share on revenue of $8.22 billion. Analysts had expected $2.18 and $8.13 billion.
Revenue rose 22% from the June quarter’s $6.72 billion. Systems revenue climbed to $5.73 billion from $4.25 billion.
Non-GAAP gross margin rose 40 basis points to 52.4%. Non-GAAP operating margin reached 40.2%.
CEO Tim Archer pointed to AI demand and chip complexity. He said Lam posted record revenue, profit and earnings per share.
What the Guidance Showed
For the December quarter, Lam expects revenue of $8.60 billion, give or take $400 million. The consensus was $8.538 billion.
Non-GAAP EPS is guided to $2.33, plus or minus $0.15. Analysts were looking for about $2.32.
The range is where some investors got nervous. Revenue could land anywhere between $8.2 billion and $9.0 billion.
EPS could fall between $2.18 and $2.48. The low end sits close to what analysts already expected.
The stock had also climbed nearly 80% over the past year. Many traders appear to have taken profits on the news.
Sales by Region and Cash
China made up 35% of revenue, followed by Korea at 20% and Taiwan at 18%. Japan was 9%, the United States 8%, Southeast Asia 6% and Europe 4%.
Customer support-related revenue was nearly flat at $2.49 billion. A year ago it was $1.78 billion.
Cash and restricted cash rose to $7.45 billion from $5.60 billion. Operating cash flow came in at $3.50 billion.
Lam returned more than $1.3 billion to investors through buybacks and dividends. The quarterly dividend was $0.33 per share, up from $0.26.
LRCX was trading at $239.31 in premarket action Thursday. That compares with Wednesday’s close of $260.81.
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