) is set to report its third quarter 2013 results on Apr 24. In
the prior quarter, the company reported in line with the Zacks
Consensus Estimate. Let's see how things are shaping up for
Growth Factors this Past Quarter
The uncertainty in semiconductor capital spending continued,
impacting both results and guidance. Modest improvement at
foundries helped however. LRCX continues to invest in the
business, which resulted in escalating costs and slightly weaker
However, management is positive about the etch business and
entered into a strategic collaboration with Axcelis Technologies,
Inc. It is optimistic about its prospects in non-oxidizing strip
applications for advanced memory and logic applications.
The Zacks Consensus Estimate for the third quarter stands at
38 cents while that for fiscal 2013 stands at $1.96.
Lam Research posted positive surprises in the three preceding
quarters and a negative surprise in the fourth quarter of 2012.
This led to an average positive surprise of 11.87% for the four
There were no estimate revisions for both the third quarter
and fiscal 2013 over the past 30 days. As a result, the Zacks
Consensus Estimates for both periods have remained unchanged.
The chances of a big surprise are unlikely given the lack of
catalysts during the quarter. The stock carries a Zacks Rank #2
We caution against stocks with Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
Other Stocks to Consider
Our model states that a stock needs to have both a positive
Zacks Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 to beat earnings estimates. You
could, therefore, consider stocks like:
), Earnings ESP of +300.0% and Zacks Rank #3 (Hold)
), Earning ESP of +62.5% and Zacks Rank #3 (Hold)
), Earnings ESP of +100.0% and Zacks Rank #3 (Hold)
AMAZON.COM INC (AMZN): Free Stock Analysis
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LINKEDIN CORP-A (LNKD): Free Stock Analysis
LAM RESEARCH (LRCX): Free Stock Analysis
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