Lam Research Rises on Earnings Beat, Forecast

Lam Research offers better-than-expected forecast for current quarter.
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Lam Research Corp.  (LRCX) - Get Report topped analyst earnings and revenue estimates in its latest financial results report Wednesday after the market closed.

The company reported adjusted earnings per diluted share of $4.01, on revenue of $2.58 billion. The company had been expected to report earnings of $3.85 a share on sales of $2.5 billion, based on a FactSet survey of 20 analysts.

In the same period a year ago, the company posted earnings of $3.87 a share on sales of $2.5 billion. It reported a net income of $533.4 million.

The company had offered guidance of $3.60 - 4.00 a share on Oct. 24. Shares have risen 13.6% since then.

“Lam closed out calendar 2019 with strong December quarter results,” Tim Archer, Lam Research’s president and chief executive officer, said in a statement. “We are executing at a high level in an improving wafer fabrication equipment environment and building a powerful pipeline of new products to fuel future growth.”

For the upcoming quarter, Lam forecast non-GAAP earnings per share of $4.55 plus or minus 40 cents on revenue of $2.8 billion. Analysts are forecasting adjusted earnings of $3.98 a share on sales of $2.6 billion.

Shares of Lam rose $14.78, or 5%, to $313.00 in after-hours trading. 

Lam Research is a holding in Jim Cramer's Action Alerts PLUS member club

Elsewhere, chip stocks were generally lower Wednesday, even after strong financial results from Apple Inc.  (AAPL) - Get Report on better-than-expected sales of its newest models of iPhones.  

The Philadelphia Semiconductor Index fell 34.57 points to 1,858.70.

Apple is a holding in Jim Cramer's Action Alerts PLUS member club