Lam Catches Late Bid

The company's shares jump after its second-quarter results top estimates.
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Lam Research

(LRCX) - Get Report

saw its shares jet higher in late trading Wednesday after the company easily flew past Wall Street's quarterly targets.

For the second quarter ended Dec. 25, the chip-equipment provider posted revenue of $358.2 million and earnings of $77.8 million, or 55 cents a share. In the September quarter, Lam had a top line of $320.9 million and a profit of $49.5 million, or 35 cents a share.

The Fremont, Calif., company had revenue of $379.8 million with earnings of $83.6 million and 59 cents a share in the year-ago second quarter.

Analysts surveyed by Thomson First Call were expecting earnings of 39 cents and sales of $344.1 million in the most recent quarter. Shares of Lam jumped $3.87, or 10.1%, to $42.19 in after-hours activity, surpassing the 52-week high of $39.92.

Lam's gross margin for the quarter rose to 49.5% from 48.6% in the September quarter. New orders recorded in backlog increased 24% sequentially to $403 million.

"Business conditions continued to strengthen in the December quarter," Steve Newberry, Lam's president and chief executive, said in a statement. "Improving demand for wafer-processing equipment and services coupled with recent market-share gains have resulted in a significant increase in new orders.

"We believe the continued increase in selection of our equipment into today's most advanced wafer-processing fabs, as well as recent next-generation technology wins, is a reflection of the company's ongoing competitiveness."