In an unexpected turn of events, Lam Research (NASDAQ:LRCX) witnessed a decline in its stock prices despite surpassing earnings and guidance expectations for its second fiscal quarter. The company reported adjusted earnings per share of $6.85, comfortably exceeding the estimated $6.12. However, its revenue of $3.48 billion, while marking a 31% decrease compared to the previous year, slightly outperformed the expected $3.41 billion.
This seemingly perplexing outcome has been attributed to Lam Research’s softer-than-expected guidance for the coming quarter, which sent its shares plummeting by about 3.2% during after-hours trading.
“Lam continues to deliver strong results despite a cyclically soft year for wafer fabrication equipment spending,” noted Tim Archer, President and Chief Executive Officer of Lam Research. He remains optimistic about the company’s future, stating, “There are tremendous growth vectors ahead for Lam, and we are investing strategically to drive long-term outperformance.”
Looking ahead to the quarter ending December 24, Lam Research forecasts revenue to fall between $3.4 billion and $4 billion. This projection falls short of analysts’ expectations, who were anticipating FQ2 revenue to reach $3.65 billion.
Moreover, adjusted earnings per share are predicted to fall within the range of $6.25 and $7.75, surpassing the expected $6.79. While these guidance figures indicate strong potential for the company, it appears that investors were anticipating even more robust results, which contributed to the post-earnings trading dip in the stock.
Lam Research’s performance in the semiconductor equipment sector will undoubtedly remain under close scrutiny as it navigates market fluctuations in the coming months.
