Lam Research Withdraws Third-Quarter Guidance

Chipmaker Lam Research withdrew its third-quarter financial guidance due to coronavirus-related site closings.
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Lam Research  (LRCX) - Get Report on Tuesday withdrew its third-quarter guidance and warned it may not reach its previously announced targets due to shutdowns related to the coronavirus.

The Fremont, Calif., semiconductor company's shares at last check edged up 0.9%. They'd closed off 18% at $213.54 in Monday's sharply down trading day.

Several Bay Area counties have issued shelter-in-place orders, requiring Lam Research to temporarily stop on-site work at its Fremont and Livermore locations for three weeks beginning Tuesday,

In addition, Lam said it has supply-chain activities in Malaysia, and the government there is shutting certain business activities beginning Wednesday through the end of the month.

"These government directives may impact our ability to meet our March-quarter financial guidance," the company said in a statement. 

"The March 2020 quarter financial guidance we provided on Jan. 29, 2020, reflected the best information available as of that time, but due to the disruptions and uncertainties resulting from these recent actions, the company is withdrawing its prior financial guidance for the fiscal quarter ending March 29, 2020."

Lam said it was closely monitoring the impact of the coronavirus. "The situation is evolving, and we will provide more information during our next earnings call," it said. 

In January, Lam topped analyst earnings and revenue estimates, reporting 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.

For the coming quarter, Lam had forecast adjusted earnings per share of $4.55, plus or minus 40 cents, on revenue of $2.8 billion. 

Analysts had called adjusted earnings of $3.98 a share on sales of $2.6 billion.