The Lam Research Corporation (LRCX) reported a quarterly revenue of $4.3 billion for Q1 2021, a 54% increase from last year’s figure $2.79 billion for Q1 2020.
Net income was $1.18 billion in Q1 2021, improving by 69% on previous year’s $695 million for Q1 2020. Improved revenue figures were the result of a growing demand for AI, IOT devices and 5G driven technologies, which has led to an increase LRCX’s products & services (i.e. manufacturing and servicing of semiconductor processing equipment used in the fabrication of integrated circuits). The operation of their new Malaysian manufacturing plant in June 2021 contributed to an increase in capacity to meet rising customer demand from the region.
While revenue rose to record levels, it missed analyst estimates by 0.50% with actual revenue of $3.304 billion vs $3.326 billion forecast while net income topped analyst estimates by 2.41% at $1.192 billion vs $1.164 billion expected. These positive results are expected to continue moving into the next quarter with revenue and net income forecasted at $4.32 billion and $1.18 billion respectively.
The EPS continued its growth trajectory to $8.36 for Q1 2021, compared to $5.76 for Q1 2020, beating analyst’s estimates of $7.53 for Q1 2021. Analysts have a positive outlook on the stock (67% of analysts proposing a buy and the remaining 33% proposing a hold position) with an average twelve-month price target of $719.71. Looking ahead to the next quarter, EPS is forecast to rise modestly to $8.42, symbolizing strong belief in both the company’s current performance and future potential.
The company’s President and CEO Tim Archer stated his firm belief in the company’s growth prospective, “Driven by strong demand and solid execution, Lam delivered its sixth consecutive quarter of record revenue and earnings per share……in a robust wafer fabrication equipment environment, Lam is delivering the innovation needed for the success of our customers’ semiconductor manufacturing roadmaps.”
While record revenue and earnings were reported, some investors seemed disappointed with the figures as the share price fell –0.93% to $565.50 after the release of earnings.
