Lam Research beats Q1 expectations, shares rise on strong outlook

Lam Research Corp (NASDAQ: LRCX) reported better-than-expected first quarter earnings and revenue, sending shares up nearly 4% as the semiconductor equipment maker provided an optimistic outlook for the coming quarter.

The company posted adjusted earnings per share of $0.86 for the quarter ended September 29, 2024, surpassing analyst estimates of $0.81. Revenue came in at $4.17 billion, exceeding the consensus forecast of $4.05 billion and representing a 7.6% increase YoY.

Lam Research's guidance for the second quarter also topped expectations. The company projects revenue between $4 billion and $4.6 billion, with the midpoint of $4.3 billion above the $4.22 billion analyst consensus. Adjusted EPS is expected to range from $0.77 to $0.97, compared to the $0.85 consensus estimate.

"With continued strong execution, Lam delivered financial performance ahead of expectations," said Tim Archer, Lam Research's President and CEO. "Looking forward, etch and deposition are fundamental to enabling the next generation of semiconductors."

The company's gross margin improved to 48.0% from 47.5% in the previous quarter. Operating income as a percentage of revenue increased to 30.3% from 29.1% sequentially.

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