Earnings Reports To Watch: Lam Research Corporation (NASDAQ:LRCX)

Lam Research Corporation (NASDAQ:LRCX) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $1.18 per share on revenue of $1.31B. Analysts had been modeling earning per share of $1.1 with $1.32B in revenue.

Lam Research Corporation (NASDAQ:LRCX) announced financial results for the quarter ended March 27, 2016 (the “March 2016 quarter”).

Highlights for the March 2016 quarter were as follows:

• Shipments of $1,446 million and revenue of $1,314 million.


• GAAP gross margin of 43.5%, GAAP operating margin of 14.5%, and GAAP diluted EPS of $0.82.


• Non-GAAP gross margin of 45.1%, non-GAAP operating margin of 18.4%, and non-GAAP diluted EPS of $1.18.

U.S. GAAP Financial Results

For the March 2016 quarter, revenue was $1,314 million, gross margin was $571 million, or 43.5% of revenue, operating expenses were $381 million, operating margin was 14.5% of revenue, and net income was $143 million, or $0.82 per diluted share on a GAAP basis. This compares to revenue of $1,426 million, gross margin of $627 million, or 43.9% of revenue, operating expenses of $388 million, operating margin of 16.8% of revenue, and net income of $223 million, or $1.28 per diluted share, for the quarter ended December 27, 2015 (the “December 2015 quarter”).

Non-GAAP Financial Results

For the March 2016 quarter, non-GAAP gross margin was $593 million or 45.1% of revenue, non-GAAP operating expenses were $350 million, non-GAAP operating margin was 18.4% of revenue, and non-GAAP net income was $203 million, or $1.18 per diluted share. This compares to non-GAAP gross margin of $648 million or 45.5% of revenue, non-GAAP operating expenses of $352 million, non-GAAP operating margin of 20.8% of revenue, and non-GAAP net income of $270 million, or $1.57 per diluted share for the December 2015 quarter.

Lam Research Corporation earnings per share showed an increasing trend of 2.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 687%.Analysts project EPS growth over the next 5 years at 13.03%. It has EPS annual growth over the past 5 fiscal years of 6.5% when sales grew 19.8. It reported -5.7% sales drop, and -29.2% EPS decline in the last quarter.

The stock is trading at $82.81, up 36.39% from 52-week low of $61.2. The stock trades down -1.22% from its peak of $84.39 and 14.47% above the consensus price target of $94.79. Its volume clocked up at 2.57 million shares which is lower than the average volume of 2.64 million shares. Its market capitalization currently stands at $13.24B.