Semiconductor equipment vendor Lam Research late Wednesday topped Wall Street's targets for its fiscal third quarter but disappointed with its outlook for the current period. LRCX stock fell in extended trading.
The Fremont, Calif.-based company earned an adjusted $6.99 a share on sales of $3.87 billion in the quarter ended March 26. Analysts polled by FactSet had expected earnings of $6.52 a share on sales of $3.82 billion. On a year-over-year basis, Lam earnings fell 6% while sales declined 5%.
However, Lam Research missed views with its guidance for the current quarter ending June 25.
The company forecast adjusted earnings of $5 a share on sales of $3.1 billion in its fiscal fourth quarter. Analysts had predicted earnings of $5.61 on sales of $3.46 billion. In the year-earlier period, Lam earned $8.83 a share on sales of $4.64 billion.
LRCX Stock Drops After Report
"With lower wafer fabrication equipment spending in 2023, we are focused on managing costs while making strategic investments for critical manufacturing inflections," Chief Executive Tim Archer said in a news release.
He added, "Our differentiated solutions and strong installed base business place Lam in an excellent position to outperform when WFE growth resumes."
In after-hours trading on the stock market today, LRCX stock dropped 0.5% to 488.45. During the regular session Wednesday, LRCX stock slid 0.9% to close at 491.02.
LRCX stock is on the IBD Tech Leaders and IBD Big Cap 20 stock lists.
Also, Lam Research has a best-possible IBD Composite Rating of 99. That puts it in the top 1% of stocks for performance in the past 12 months.
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