Lam Research Corporation
) is set to report third-quarter fiscal 2014 results on Apr 23.
Last quarter, it posted a 6.8% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
Lam Research posted decent fiscal second quarter 2014 results
with both the top and bottom lines beating the Zacks Consensus
Estimate. The year-over-year revenue growth of 29.6% was
attributable to persistent strength in the foundry segment. Also,
its memory business reflected a strong performance in the
The company's advanced packaging segment is also experiencing
growth due to several design wins in advanced wafer-level
Moreover, Lam Research's non-GAAP gross profit of $510.8
million was up from $456.7 million in the prior quarter. Higher
revenues coupled with favorable customer mix were the main
reasons for the margin increase.
Furthermore, the company expects modest improvement in
semiconductor spending in the near term. The company believes
that its continuous investment in next-generation products and
technologies to combat the fierce competition from companies like
Applied Materials, Inc.
) will boost growth and profitability going forward.
Our proven model does not conclusively show that Lam Research
will beat estimates this quarter. That is because a stock needs
to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at $1.16. Hence, the difference is 0.00%.
Lam Research's Zacks Rank #3 (Hold), when combined with a 0.00%
ESP makes surprise prediction difficult.
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
Here are some other companies, which you may want to consider
as our model shows that they have the right combination of
elements to post an earnings beat this quarter:
Advanced Energy Industries, Inc.
), with Earnings ESP of +10.00% and a Zacks Rank #1 (Strong
E-Commerce China Dangdang Inc.
), with Earnings ESP of +33.33% and a Zacks Rank #1.
ADV ENERGY INDS (AEIS): Free Stock Analysis
APPLD MATLS INC (AMAT): Free Stock Analysis
E-COMMRC CH-ADR (DANG): Free Stock Analysis
LAM RESEARCH (LRCX): Free Stock Analysis
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