Semiconductor equipment supplier Lam research (LRCX) late Wednesday significantly beat expectations for its fiscal third quarter and came in ahead of expectations for the current period. But LRCX stock fluctuated in extended trading.
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The Fremont, Calif.-based company reported adjusted earnings of $7.79 per share on revenue of $3.79 billion in the quarter ended March 31. Analysts polled by FactSet had forecast earnings of $7.30 per share on revenue of $3.72 billion. Year-over-year, Lam’s profit rose 11% while revenue fell 2%.
The March quarter results marked a return to profit growth for Lam after four consecutive quarters of declines. However, sales fell year-over-year for the fifth consecutive quarter.
For the current quarter, Lam forecast adjusted earnings of $7.50 per share on revenue of $3.8 billion. Wall Street forecast fourth-quarter earnings of $7.30 per share on revenue of $3.77 billion. In the same period last year, Lam earned an adjusted $5.98 per share on revenue of $3.21 billion.
LRCX stock is in a flat base
In after-hours trading on the stock market today, LRCX stock fluctuated between gains and losses. The stock was last down more than 3% at 851.01. During Wednesday’s regular session, LRCX shares fell 0.3% to close at 884.89.
“With solid sales and earnings per share performance in the March quarter, Lam is off to a strong start to calendar year 2024,” Chief Executive Officer Tim Archer said in a press release.
He added: “As our customers address the challenges of scaling semiconductors to meet the performance and speed requirements for AI transformation, Lam strengthens its leadership position and embraces the significant opportunities that lie ahead set up.”
According to IBD MarketSurge charts, LRCX stock is in a flat base with a 1,007.39 buy point. However, Lam Research is trading well below its 50-day moving average.
Last week, industry colleague ASML (ASML) reported mixed first-quarter results and provided guidance below. ASML stock plunged after the earnings report.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks, click here.
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