Lam Research (NASDAQ:LRCX) Posts Quarterly Earnings Results

Lam Research (NASDAQ:LRCX) issued its earnings results on Wednesday. The semiconductor company reported $8.14 earnings per share for the quarter, topping the consensus estimate of $7.58 by $0.56, Zacks reports. Lam Research had a return on equity of 48.71% and a net margin of 25.68%. The business had revenue of $3.87 billion during the quarter, compared to analysts’ expectations of $3.82 billion. During the same period in the prior year, the business earned $5.98 EPS. The business’s revenue for the quarter was up 20.7% compared to the same quarter last year. Lam Research updated its Q1 guidance to $7.25-8.75 EPS and its Q1 2025 guidance to 7.250-8.750 EPS.

Lam Research Price Performance

LRCX traded down $67.33 during trading on Friday, hitting $763.00. The company’s stock had a trading volume of 2,707,252 shares, compared to its average volume of 1,248,138. The company has a current ratio of 2.97, a quick ratio of 1.84 and a debt-to-equity ratio of 0.52. Lam Research has a twelve month low of $574.42 and a twelve month high of $1,130.00. The business’s fifty day simple moving average is $999.84 and its 200 day simple moving average is $944.73. The firm has a market capitalization of $99.75 billion, a price-to-earnings ratio of 28.06, a P/E/G ratio of 2.41 and a beta of 1.48.

Shares of Lam Research are set to split before the market opens on Thursday, October 3rd. The 10-1 split was announced on Tuesday, May 21st. The newly created shares will be issued to shareholders after the market closes on Wednesday, October 2nd.

Lam Research Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, July 10th. Investors of record on Tuesday, June 18th were issued a dividend of $2.00 per share. This represents a $8.00 annualized dividend and a yield of 1.05%. The ex-dividend date of this dividend was Tuesday, June 18th. Lam Research’s dividend payout ratio (DPR) is 29.42%.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on LRCX shares. StockNews.com cut Lam Research from a “buy” rating to a “hold” rating in a report on Friday, July 26th. Susquehanna decreased their price objective on Lam Research from $880.00 to $850.00 and set a “neutral” rating for the company in a research note on Thursday, April 25th. Mizuho upped their price objective on Lam Research from $935.00 to $960.00 and gave the stock a “buy” rating in a research note on Thursday, April 25th. TD Cowen upped their price objective on Lam Research from $1,000.00 to $1,050.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Jefferies Financial Group started coverage on Lam Research in a research note on Monday, May 13th. They set a “buy” rating and a $1,100.00 price objective for the company. Six analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company. According to data from MarketBeat, Lam Research currently has an average rating of “Moderate Buy” and a consensus target price of $1,007.85.

Lam Research announced that its board has approved a stock repurchase program on Tuesday, May 21st that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 8.1% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In other news, CEO Timothy Archer sold 9,650 shares of the firm’s stock in a transaction that occurred on Friday, June 28th. The stock was sold at an average price of $1,070.39, for a total value of $10,329,263.50. Following the transaction, the chief executive officer now owns 84,639 shares in the company, valued at $90,596,739.21. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In related news, CEO Timothy Archer sold 9,650 shares of Lam Research stock in a transaction that occurred on Friday, June 28th. The stock was sold at an average price of $1,070.39, for a total transaction of $10,329,263.50. Following the transaction, the chief executive officer now owns 84,639 shares in the company, valued at $90,596,739.21. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, CAO Christina Correia sold 647 shares of Lam Research stock in a transaction that occurred on Monday, July 1st. The stock was sold at an average price of $1,062.26, for a total value of $687,282.22. Following the transaction, the chief accounting officer now owns 4,914 shares in the company, valued at approximately $5,219,945.64. The disclosure for this sale can be found here. Insiders have sold a total of 16,326 shares of company stock worth $17,383,715 over the last quarter. 0.32% of the stock is currently owned by corporate insiders.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.